NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
The effect of negative divergence indicating weakness on the weakly chart was felt on Friday's trading. In the opening session, it was not able to cross the level of 6081 to come out of the wedge like formation for a sharp up move. Instead, Nifty Future remained weak right from the opening session and precipitated in to a fall after the mid session - helped mainly by Bharati, Infosys etc resulting to a 3% fall by the end of the day. During the week, Nifty Future saw a fall of 5% and took away the gains of previous two weeks. The week closed at 5914.
Considering that Nifty Future has closed outside the Andrew's Pitchfork and 6030 will now provide strong resistance on the up side, it will be better to make new buying only at lower levels. The next support levels are 5850 - 5800. While there is an area of support at 5740, but the weakness will accelerate below 5800 on the break of trend line.
It is best to be on the side lines till market stabilises and forms a bottom. However, those who are willing to take higher risk can consider going long on Nifty Future around 5850 with stop loss of 5800. On the higher side, it will find resistance at 5940 and 6030 will provide strong resistance as mentioned earlier. Fresh short position may be considered at 6030 with a stop loss of 6055.
Put Call Ratio of Index Options decreased to 0.98 as against 1.09 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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