Sunday, October 24, 2010

TURNING POINTS FOR 25.10.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, after a flat opening, Nifty Future remained sideways and then went down to a low of 6058 and closed at 6090. In the opening session, it made a high of 6150 but could not cross the previous day's high of 6152.
Friday's low of 6058 should be considered as higher bottom and any buy trades for tomorrow should be taken with 6055 as stop loss. Next week will be FNO settlement week which could lead to higher volatility.
Considering the weekly candle as discussed in the weekly post, it will be better to consider buy trades for next week with stop loss of 6055. On higher side Nifty Future will find resistance at 6155 and 6200. If it manages to close above 5200, possibility of testing the previous top of 6336 will be very high.
Down side should be considered only below 6055 that too with 6000 giving good support. But considering the weekly candle and the strength in Reliance, it looks unlikely that more down side (i.e. below 6000) will be seen at least till FNO settlement on Thursday.
Put Call Ratio of Index Options increased to 1.07 as against 1.01 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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