NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading, Nifty Future had a firm opening and continued steady rise through out the day, albeit without participation from Reliance & Infosys. The party was led by SBI, LT, TATA MOTORS etc. The movement of Nifty Future on the 30 min chart has formed a tight rising wedge. Considering the sharp rise in DOW at the time of writing this post, and also the strong close for Nifty Future today, it is obvious to expect a strong opening which will lead to break out of rising wedge on the up side, but .... you never know.
Normally the down side break out from such rising wedge are quite sharp, hence one needs to be little extra careful.
On the EOD chart you will observe that the close is right on the horizontal line which was expected to be a hurdle and as stated above, in all likelyhood we will cross this in the opening session tomorrow. However, we are now moving into the next hurdle at 6050 and 6100, the crossing of which seems difficult - at least at the first attempt. As such, in my opinion, 6050 itself should be a difficult thing to cross, particularly without the participation of Reliance & Infosys.
In view of the above, I am not suggesting fresh long positions unless one wants to take the additional risk. Moreover, we are already into 3 days of bullishness.
One can consider going short below 5950 with strict stop loss of 6000. On the downside, it will find support at 5925 and strong support at 5885.
Put Call Ratio of Index Options increased to 1.06 as against 0.82 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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