Tuesday, November 2, 2010

TURNING POINTS FOR 02.11.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
In yesterday's trading, Nifty Future saw gap open, followed by a sustained rise to make a high of 6172 and the day's low was 6091. The gains were led by Reliance and bank stocks - particularly ICICI BANK.
We have an important event (RBI meet) lined up for today, that could have impact on Bank stocks. Yesterday Bank Nifty has almost come to the previous level and is close to doing a double top. Expecting bank stocks to continue its sustained rise (post RBI announcements) from the current levels would be a little preposterous, hence the probaility of negative reaction to the policy announcements remains higher. Long positions in Bank Nifty should be trailed with stop loss of 12600.
As regards Nifty Future, considering sharp rise yesterday, it would be better to avoid fresh long positions today. On higher side 6185 would be a hurdle and hence the same too can be used as a stop loss.
One can consider going short when Nifty trades below 6130 level with 6160 as a stop loss. On the down side 6100 and 6065 will provide support.
Put Call Ratio of Index Options increased to 1.05 as against 0.97 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher,
Words of Wisdom
Great traders focus on the two things they can always control:
when they play and how much they bet.

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