Thursday, October 21, 2010

TURNING POINTS FOR 22.10.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
On the back of strong up move in US markets, Nifty Future opened firm and after initial hesitation, gathered pace by mid session and in the last 30 mins made day's high of 6152 and closed firm at 6135. The move was largely a result of strength displayed by Reliance.
Those following TP Grid would have observed that the day's high of 6152 was on the dot at the mid point of 6153 given under the column Oct 2010.
As we approach key resistance level at 6200 tomorrow, we will know whether we have more upside left or this was just a pull back rally. I would suggest it would be better to go short as Nifty Future approaches 6190 levels with stop loss of 6225. On the down side, it will have support at 6125 and 6090.
In case of weak opening, one can consider buying with stop loss of 6075. On the higher side it will find resistance at 6155 and 6190 levels.
Put Call Ratio of Index Options remained unchanged at 1.01 as against 1.00 yesterday.
Tomorrow's movement may be critical for the market from the weekly candle point of view as well as its reaction near 6200 levels, hence we can expect above average volatility.
In case of close above 6135, we can expect Nifty Future to test the previous high of 6336 next week.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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