TURNING POINTS FOR 19.11.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:

In today's trading, Nifty Future opened at yesterday's level and made a high of 6047 in the early trading and suddenly fell down to a low 5925 and thereafter saw a sharp up move to make a high of 6057 and closed at 6032 - near the high of the day indicating a strong opening tomorrow (now supported by an up move in the US markets).

As indicated in yesterday's post, we are in a sideways market for some time and there are really no negative triggers (at least for now) for the market to fall perpendicularly - and hence the sharp up move. All said, we still saw a volatile day with a lower bottom and much lower top then yesterday. So please do not feel very euphoric about this sharp up move, as we will have to now contend with many hurdles on the way up. As we all know, going down the hill is much easier than climbing it - I guess, the same rule applies to the markets.

With tomorrow being a Friday and assuming a rise tomorrow, on weekly chart we will still be making a lower top (as the previous week's high is 6347) and lower bottom - for the first time after having made a new top on Muhurat trading day. Hope this observation helps the traders to contain their bullish enthusiasm and book profits when available.
For tomorrow, long position may be taken above 6060 with stop loss of 6030. On higher side, it will face strong resistance at 6100 as indicated on the 30 min chart. If it manages to cross 6100 we have resistances at 6135 and 6175.

Short positions may be taken at the resistance levels indicated above - but make sure to be quick on taking profits.

Put Call Ratio of Index Options inched up to 1.07 as against 1.01 on the previous trading day.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.