NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future opened near previous day's close and made today's high of 5715, but thereafter remained weak through out the day and in last hour broke the previous low of 5629 to make a new low of 5597 and closed the FNO settlement day at 5604. Needless to say the close has been very weak i.e. below the previous low and there is all round pessimism.
At this stage I would like to inform the readers, that the above figures are for Jan series and tomorrow we will be dealing with Feb series only and hence we must not miss the perspective of Nifty Future Feb series which had O-H-L-C as 5728-5734-5620-5630. Please note that when we see the Feb series, the close is just above 200 DMA level of 5628. When Nifty Future trades above 5650 level tomorrow, it would have also crossed the trend line shown on 30 min chart and may lead to further bullishness up to 5700. In case 5600 is not broken, one can consider going long above 5650 with stop loss of 5600.
Alternatively if Nifty Future continues the weakness and opens low, we have supports at 5555 and 5510. Based on the oscillators on the EOD chart, I have been optimistic of a bounce. In case of weak opening, 5555 holds good promise for a low from where bounce seems possible. One can consider going long at the first sign of support at this level with stop loss of 5525 - considering the risk involved, one should buy Call option instead of Nifty Future. On the higher side, it will find resistance at 5650 and 5700 levels. It will be advisable not to remain short above 5710, as NIfty Future can take a sharp U turn thereafter. Please do remember that we are just 2 days away from close of Monthly candle and the way the candle is looking today (engulfing previous 3 months candle), even long term investor will get uncomfortable staying invested in equities. This itself may be a good reason for shorterm bullishness.
Put Call Ratio of Index Options decreased to 0.96 as against 1.00 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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