NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
The day started with much promise but Nifty Future could not go above 5842. In the second session - due to weakness in Infosys and Reliance, once again it broke yesterday's low and went down to make a low of 5700. In the last 30 min, the recovery from 5700 was very sharp and Nifty Future made a high of 5823. A volatile day that finally closed at 5770. In the absence of any readers appreciating the merits of TP Grid, I once again take the opportunity to draw your attention as to how well it performed today - for both Nifty Future as well as Bank Nifty Future. All you need to do is to recalculate the same, when New intra day High and Low is made. The only reason for blowing TP Grid's trumpet is - a profound hope that more "day traders" can benefit from the same.
The day started with much promise but Nifty Future could not go above 5842. In the second session - due to weakness in Infosys and Reliance, once again it broke yesterday's low and went down to make a low of 5700. In the last 30 min, the recovery from 5700 was very sharp and Nifty Future made a high of 5823. A volatile day that finally closed at 5770. In the absence of any readers appreciating the merits of TP Grid, I once again take the opportunity to draw your attention as to how well it performed today - for both Nifty Future as well as Bank Nifty Future. All you need to do is to recalculate the same, when New intra day High and Low is made. The only reason for blowing TP Grid's trumpet is - a profound hope that more "day traders" can benefit from the same.
Is the worst over?
I don't think so, as we have once again made a new low and the EOD candle is just a doji - indicating indecisiveness. Today was the 6th day for lower top/lower bottom formation. Moreover, 5700 was a logical support for a bounce as indicated on the chart and also mentioned in my post yesterday. The critical thing for Nifty Future is to go above 5850 (also good stop loss for short positions), which looks little difficult tomorrow, considering the close for the day is 5770. Only when Nifty Future stabilises above 5850, I would like to believe that the worst is over - at least for the time being. Looking at the 30 min chart, i would keep the possibility of further down side open and trade accordingly. Interestingly, we are now close to 5605 - 200 DMA, which could provide the next support - possibly tomorrow, if weakness in Infosys and Reliance have to continue. Thereafter, 5500 levels has multiple support areas. As such, Nifty Future needs to make a base for couple of days and a strong bullish candle on the weekly chart, to call for possibility of a turnaround with any degree of confidence. Considering the pain in the market, hopefully we are nearer to the bottom - at least for a good bounce.
At these low levels, I would not advise going short. At the same time buying may be considered - preferably in Call Options at the support levels indicated above or with the help of TP Grid, so that the risk is minimised.
Put Call Ratio of Index Options increased to 1.16 as against 1.06 yesterday.
Please do not trade without STOP LOSS as in these volatile markets - it costs lot of money.
With Best Wishes,
Ketan Asher.
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