Saturday, November 20, 2010

WEEKLY TURNING POINTS FOR 19.11.2O10



NIFTY FUTURE WEEKLY
We ended the week yesterday on a weak note, as traders were not willing to take the risk over the weekend. Break of 5900 does make the market weak, but we must remember that we are 7.70% down from the top in two weeks. Lets face it, as of now nothing has happened on the political front - we all are aware that there have been many scams in the past too and nothing has come out of it. If nothing comes out of it this time too, there could be a sharp pull back next week.
As shown on the attached Weekly chart, we are close to the trend line support near 5800 and at 5750 we will achieve H & S pattern target of 5750 on the 30 min chart referred some days back. Hence it will be advisable to square off short position at these support levels or keep a tight trailing stop loss.
To decide the future course of market, it will be interesting to watch as to how far Nifty Future is able to pull back as 6000 and 6100 will provide tough resistance. Another important factor to keep in mind for the next week is the FNO settlement on Thursday and almost immediately followed by the month end candle in the following week.
At this level, do not remain too bearish, as Monday is also an important Gann turn date.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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