NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future opened firm and remained in narrow range with upward bias. However, enthusiasm expected after a firm close in US markets was missing. The day's high and low are 5970 and 5906. The day's close was at 5960 - near the high of the day, suggesting strong opening tomorrow.
While the Nifty Future is moving up, the momentum is lacking as on the EOD chart we have not been able to form higher bottom and higher top, where as the same has been achieved on the 30 min chart and helping the slow up move.
For tomorrow, one can consider going long with stop loss of 5940. It will face resistance at 5985 (remember yesterday it formed Op=Hi=5985) and major resistance at 6000 and 6035.
It would be prudent to liquidate long position at this levels as it may not be possible to cross this level at the 1st attempt.
A word of caution will not be out of place here that, if Nifty Future turns around from about 6000 levels it would have formed the Right Shoulder on the EOD chart with neckline at about 5727 levels. If for any reason this neckline is broken on the downside, we end up with a target of about 5350. While it may be difficult to believe this today, a trader must keep this in mind, for protecting long positions with a tight stop loss.
Short position may be taken below 5940 with stop loss of 5965. On the down side, it will find support at 5900 and 5850. Panic may set in below 5850.
Put Call Ratio of Index Options increased marginally to 1.07 as against 1.02 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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