NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future had a strong open and made the day's low of 5788 and there after maintained upward bias (with good support from Reliance) throughout the day and made a high of 5864. As the high of the day was made during the last 30 min, the close for the day has been reported as 5845.
On the EOD chart you will observe that Nifty Future remained just below the trend line. We can expect Nifty Future to gain further momentum only upon crossing the trend line above 5850 or better still after breaking today's high of 5864.
Those who have seen my noting on the DOW chart, I had mentioned that below 11000, it would break the inverted Flag on the down side. At the time of writing this post, it has gone down below 11000 on the back of European Debt Crisis. The inverted flag gives a target of about 10525. This point must be kept in mind while taking long position in our markets also as in light of weak closing in DOW today, we too may not gather the desired momentum to have a monthly close anywhere near 6000. Thus monthly candle for Nifty Future will be extremely bearish.
For tomorrow, one can hold existing long position with a strict stop loss of 5800. It will be better to create fresh long position only above 5865. One can even consider going short below 5800 with stop loss of 5835. On the down side we may see sharp decline to 5725 and 5675 levels. In this event, long positions should be avoided till Nifty Future takes support at 5550 levels.
Put Call Ratio of Index Options decreased to 0.99 as against 1.11 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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