NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In last three days of the week, Nifty Future fell the entire weeks range of over 300 points and still we feel that it can fall more tomorrow. This is mainly due to the sudden change in environment around us mainly what we hear from the media. In this respect charts help us to be more rational and tell us likely support points. As can be seen on the EOD chart, median line of Andrews Pitchfork has provided good support for some time now - as it did on the Friday. With US markets too getting weak on Friday, it is natural to expect a weak opening for us, but I don't think the sell off can continue, as has happened for the past three days.
Tomorrow being the last day of the month we will get the montly candle which is of higher significance for the chart reading. I have updated the monthly candle elsewhere on the blog and you will find the same is looking bad enough and is close to wiping out all the gains which arose from the break out at 5400 levels about 5 months back. If there is an up move tomorrow, it can leave some lower shadow on the monhly candle for Jan 2011.
In view of the above, tomorrow one can go long above 5555 (stop loss of 5500) with resistance at 5620-5640 and major hurdle at 5675.
In the event it opens weak in sympathy with US markets, it may go to retest the Friday's low of 5485. In this event, one can consider going long at lower levels with a stop loss of 5465.
I do not recommend short positions at lower levels.
The above levels are for trading positions and as mentioned in the weekly post, investment buying is best avoided now. After the monthly candle that forms tomorrow, people may use every rise to sell off.
Put Call Ratio of Index Options increased from 0.96 to 1.10 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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