NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
PLEASE DO NOT MISS OUT THE PREVIOUS POST TITLED "EFFECTIVENESS OF 50% LEVEL"
NIFTY FUTURE:
In Tuesday's trading, after a steady opening and some sideways movement wherein Nifty Future made a high of 6134 and by mid session saw a sharp fall wherein it made a low of 5976 and closed weak at 5995 - just below 6000. We are now at the lower end of the trading range of 5950 and 6350 as has been highlighted in yellow colour on the EOD chart.
As indicated on the 30 min chart we have decisively broken out of a Head & Shoulder pattern with neckline at 6078. This gives the eventual pattern target of 5750. However, one should get bearish for this target only if previous low of 5940 is broken. Moreover, we have another support in swing mid point of 5850. Only if this level is broken, we should look for achieving the pattern target of 5750 indicated above. Being near the lower end of the trading range, short positions should be held with a tight stop loss of 6030 or 6065 depending on your risk profile. On the down side below 5940, Nifty Future will find support at 5900 and 5850.
We are now at a stage where 6100 will act as a strong resistance level and hence in case of strong opening, one can consider going short at higher range of 6075 - 6100, with 6135 as a stop loss.
One must bear in mind that Dow has a strong support at 11000 and will get more bearish only below that level. Having enjoyed a holiday today, our reaction to fall in Dow may get somewhat less aggressive tomorrow.
Put Call Ratio of Index Options remained almost same at 1.01 as against 1.00 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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