Sunday, September 19, 2010

TURNING POINTS FOR 20.09.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
At the End of day on Friday Nifty Future closed strong and that too with all the days of the week showing higher bottom. This itself suggest how strong the momentum is. The only positive from bearish point of view is that Nifty Future did not cross previous day's high.
Though repetitive (and may be boring!) I would like to advise caution at higher levels. As mentioned in my weekly post - the coming week could provide a turning point for the market. Moreover, Monday happens to be the 83rd day from the low of the 4786 and is the total of the previous two moves as shown on the chart.
Existing short positions should be held with a stop loss of 5940. Aggressive traders sharing my view may even consider going short at first sign of weakness with stop loss of 5940. Alternatively, one can consider going short below 5850 with stop loss of 5880. On the down side, it will find support at 5800 and 5775. Close below 5800 should be considered that we are ready for a healthy correction.
Put Call Ratio of Index Options increased to 1.36 as against 1.23 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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