NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
After a volatile Friday which closed (5654) near the low (5638) of the day/week does not augur well for commencement of the new week tomorrow. If that was not all, the Govt has announced increase of about Rs. 2.50/liter on petrol. May be we start tomorrow with a panic low which could induce buying/short covering.
As stated in the weekly post, considering the divergence on the EOD chart and strong support area around 5500 levels, I expect a bounce may be from 5565 and not 5613 (200 DMA) - considering bearish sentiments due to petrol price hike. If this happens tomorrow after the first 30 min., one can consider going long with 5550 as a stop loss.
Nifty Future going above 5700 will be the 1st sign of likely pullback. Higher up, we will face resistance around 5800 - 5850 - 5925 and 6000.
Even at the risk of going wrong, more so in the light of petrol price hike and hence more number of people turning bearish, I expect a bounce - hence short positions should be avoided or else maintained with a stop loss of 5700. Considering the steep fall (of 600 points) for the past two weeks and multiple support levels around 5500 - 5600 range, I do not expect this range to be broken at the first instance and hence the optimism for a likely bounce.
This could be a good opportunity to buy for a bounce for Nifty Future to at least 6000. Considering the prevailing high volatility, it would be better to trade in options or better still on delivery basis so that the risk of loss is minimized, even if you forget to use the stop loss.
Put Call Ratio of Index Options marginally decreased to 0.98 as against 1.04 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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