Wednesday, October 20, 2010

TURNING POINTS FOR 21.10.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today' trading, Nifty Future opened weak and remained renebound for better part of the day, but in the last one hour had a sharp down move - the day's high and low were 6077 and 5988 respectively. At the end of the day, Nifty Future closed at 6008. Please see the 30 min chart to get an idea how well Andrew's Pitchfork has given support at today's low and on the EOD chart, Nifty Future has taken support at the median line of the Andrew's Pitchfork. The positive for the day is that inspite of weak US markets, we did not see much downside (though market did remain nervous) and the premium on Nifty Future was restored.
For tomorrow, one can consider long position with 5985 as stop loss. On the higher side it will find resistance at 6080 - 6125 and 6155. On the EOD chart I have shown a red line from the top of 6318 and also indicated that fresh up move is possible only if 6210 level is crossed tomorrow. Till then we should treat any up move as a pull back. Hence please do not wait for a big killing but keep booking profits at any sign of weakness - particularly at the support and resistance levels indicated here. Please not we have only 6 trading days (including tomorrow) to FNO settlement day, hence that pressure will also be felt.
Put Call Ratio of Index Options remained almost unchanged at 1.00 as agianst 1.05 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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