NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
On the back of big gains in US markets, Nifty Future opened strong and made a high of 6243 - just 5 points short of the previous high, and retreated by mid day to a low of 6185 and closed strong at 6214.
Note worthy features of today's trading were:
1. In spite of very good global cues, Nifty Future did not make a new high and continue its upward march. Was this due to the effect of 'Divine Guidance' mentioned by me two days back about the 6248 high? I wish I had a definite answer to this.
2. In the second half of the trading session, Reliance made a smart up move with good volumes and is now poised to lead the market from the front.
3. On the 30 min chart attached, you will find a Flag like formation wherein the breakout is above 6248 and has a target of 6500. All those having short position must take note of this possibility and protect their positions accordingly.
Although the oscillators are quite over stretched, points referred above indicate possibility of the up move continuing further. In the current scenario when money flow is the key driver of the markets any thing seems to be possible.
For tomorrow, on up side one needs to watch 6248 and break above it should be taken advantage of with suitable stop loss. One needs to keep a watch on Reliance for judging the sustainability of the next phase of the up move.
The above possibility gets nullified when Nifty future trades below 6175. The way market has remained in the narrow range for the past three days, Nifty future can hit 6120 - shown on the EOD chart, in no time.
Put Call Ratio of Index Options remained almost unchanged at 0.92 as agianst 0.95 yesterday.
I have tried to illustrate both the likely scenarios and either way there could be strong move, so please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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