NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a sustained fall seen over the last week, at least we began the week with a small new low to 5629 and also a failed attempt to cross 5700 level. In today's trading, Nifty Future made a high of 5704 and gave up most of the gains to close the day at 5657. The EOD candle is an inverted hammer (an upside-down hammer (White or Black body), which typically indicates a bottom reversal signal, but requires confirmation on the next trading day. Though the market does remain weak, a bounce from the 200 DMA still remains possibility.
In view of the above, my bias remains positive, and long positions may be taken with a stop loss of 5600 if 200 DMA at 5616 is held or safer still with stop loss of 5560. Alternatively, one can consider going long only above 5680 with stop loss of 5650. On the higher side it will face resistance at 5705 - 5760 - 5800 and 5850.
Considering my optimism for a pull back, and number of supports around 5500-5600 range, I do not advise going short at lower levels. If today's EOD candle is any guidance, and the fact that we do not have to worry about US markets (as they have holiday), we can hope that Nifty Future will muster enought strength to cross the 5700 mark decisively tomorrow, to face the next hurdle at 5800.
Put Call Ratio of Index Options increased to 1.04 as against 0.98 on the previous trading day.
Please do not trade without STOP LOSS, as either side move could be sharp.
With Best Wishes,
Ketan Asher.
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