NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In Friday's trading, Nifty Future did not show the enthusiasm displayed on Thursday. Not only that, it maintained a downward bias throughout the day and because of turbulence on the political arena it resulted on a sell off, as traders did not wish to take the weekend risk. During the day, Nifty Future made a high of 6013 and low of 5860 and closed at 5890. We have already taken support on the 1st level of 5850 indicated in the previous post. In this sell off, we have also moved out of the rectangular range (in yellow colour) being shown on the EOD chart. We now have to contend with the target of 5750 being shown on the 30 min chart. Although to achieve this target Nifty Future has to break 5800 which can act as a support. As is being maintained in my post, 5750 - 5800 can provide good support for a bounce and hence it is advisable not to remain short and take a long trading position with a suitable stop loss. In my view, there is still time to look for investment buying.
On the higher side 5940 - 5970 and 6000 will act as strong resistance. We must also factor the volatility due to FNO settlement on the coming Thursday. How far this up move takes the index will decide the next course of market direction. Do remember that this down move is more a result of markets' own weight and the fear factor on the political front. As such, nothing has really gone wrong as yet and this is the result - what if things really precipitate on the political front? The threat remains till Tuesday.
Put Call Ratio of Index Options remained unchanged at 1.07. Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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