NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
HISTORY CHECK: OUT OF 10 : 8 times positive close and 2 times negative close for Nov.
As indicated in the weekly post yesterday, it is the Oct monthly candle which is a cause for concern.
In Friday's trading, Nifty Future maintained a negative bias and made a new low of 5966 and in last hour made a sharp recovery to the day's high of 6066 and closed at 6044. The reason for the recovery could be strong support indicated at 5950 and also that day being a weekly/monthly close.
With Reliance results declared after the market hours on Friday, we will see the effect first thing tomorrow and that should set the tone for market direction. Long positions should be taken only above 6075 with stop loss of 6045. On higher side, it will face resistance at 6100 and strong resistance at 6145. While above 6145 it may show strength, and hence it is better not to remain short. However, I would like to caution the readers, that even after reaching 6225 it may fall short of going to the previous top of 6336. Only a close above 6225 we can expect to see Nifty Future making a new top.
As Nifty Future has shown a sharp pull back from the area of support near 5950, it would be better to avoid short trades at lower levels - at least for tomorrow.
Next week is made of Diwali festivities and President Obama's visit - both events being times to celebrate and feel good, and hence market too may end up directionless.
Put Call Ratio of Index Options decreased marginally to 0.97 as against 1.01 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
Words of Wisdom
A formula for success in life and finance:
never hold an investment that you would not be willing to purchase afresh today.
No comments:
Post a Comment