NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
Today's session opened with a freak trade of Open = High = 5985 but was quite steady in the first hour but suddenly saw a down move of almost 85 points in 30 mins thereafter to make the day's low of 5797. However in the second half it once again saw a sharp up move to close the day at 5933 near the real high of 5940 in the last 30 min of trade. While those who have been able to catch the swings both the sides correctly would have nothing to complain, but for a day trader to make money with this kind of sharp moves both the sides will need swiftness to change the view and loads of luck on his side.
The stock markets being true symbol of capitalism one can not complain about the sharp moves either side, but evidently it does suggest that "All is not well".
The good part of the fall was that the it did not break the previous day's low and took about turn (may be due to short covering) to close near the high of the day - once again giving hopes of the continuation of the up move.
For tomorrow, one needs to be extra cautious as we are now approaching the major hurdle around 6000 levels. If it does manage to come around this level, one can go short once Nifty Future remains below 5970 with stop loss of 6000 or safer still 6035. The up move will look good on the charts only if it is able to go past or better still - close above 6035 levels. Considering the sharpness of today's fall one needs to trail the long positions not with mental stop losses but by keeping actual stop losses in to the trading terminals (and pray that the move is not so sharp to jump the stop loss levels). It is best to avoid long positions at higher levels.
Short position may be considered below 5890 with stop loss of 5941. On the down side, it will find support at 5850 and panic can set in below 5800.
Put Call Ratio of Index Options increased to 1.02 as against 0.92 on the previous trading day.
Please do not trade without STOP LOSS - as the wisdom suggests that "money saved is money earned".
With Best Wishes,
Ketan Asher.
Hi Ketan
ReplyDeletesmall query ..what is PR in PR level.
I've been studying the concept of your 50 % levels and very positive abt the manual backtesting on charts and trying to integrate into a system in my trading method.Can you guide about the setup rules - entries and exits which are high probability trades using the 50 % rule.
Thks in advance
regs
PR refers to Price Retracement Start & End. The point i am trying to convey is that 50% level referred to in the note works very well as support and resistance atleast for once. I do not have any specific entry exit rules.
ReplyDeleteIn future please for any clarification, pl send me an email.
Regards,
Ketan Asher.