NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
After a weak opening this morning, Nifty Future gave an impression that the worst was over, but could not muster the necessary strength to change the onslaught of hammering. Once 5800 was broken it went down to a low of 5746 and closed at 5766. Pathetic close to the first day of the week - that too after a bad close last week. Those not in the habit of protecting their long position can only blame themselves and at best to Newton.
If last 5 day's hammering looks bad enough, I wonder what will happen if & when we have to see life for Nifty Future below 5500. We are down 7.50% in just 5 days of persistent fall. Even 6200 level looks so far today.
What Next?
Today the stocks fell as if it was the last day. I am sure this can not continue daily as we are now in the 5700 region where Nifty Future has bounced off on the previous two occasions and there could be a short covering rush - hopefully tomorrow. Hence, going short, even though market looks weak, is best avoided at least tomorrow and at lower levels. As shown on the EOD chart, there is a Trend Line support as well as Median Line of the Andrew's Pitchfork near 5685 level. One can consider going long around 5700 levels with a strict stop loss of 5650. If you can avoid bottom fishing, that is the best.
On the way up, Nifty Future will face resistance at 5835 - 5865 and 5925.
Put Call Ratio of Index Options increased to 1.06 as against 0.98 on the previous trading day.
Please do not trade without STOP LOSS. (remember: Money saved is money earned)
With Best Wishes,
Ketan Asher.
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