Wednesday, January 19, 2011

TURNING POINTS FOR 19.01.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE:
In yesterday's trading, Nifty Future opened firm but languished sideways for better part of the day but in the last hour made a decisive move and crossed the Andrew's Pitchfork shown on the 30 min chart and closed firm at 5732. The day's high and low were 5742 and 5672 respectively.
Considering yesterday's firm close and strength in US markets, we can be fairly certain of strong opening. One can consider going long with stop loss of 5680. On higher side, it will face resistance at 5750 and strong hurdle at 5800. Avoid taking long position in case of gap up opening. It is always advisable to go long on pullback.
In view of Nifty Future maintaining upward bias, I would not advise short position. However, those with aggressive approach can consider going short around 5800 with strict stop loss of 5831 and with a view to take quick profit. I must add here, that if we manage to cross 5800 preferably on closing basis, market will appear to be more confident to go up to the next major hurdle at 5950-6000 range.
Put Call Ratio of Index Options decreased marginally to 1.00 as against 1.04 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
PS: Please accept my apologies for not being able to write the post last evening due to some personal commitment.

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