Wednesday, February 2, 2011

TURNING POINTS FOR 03.02.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
On the back of strong close in US markets, we did open strong and showed strength to make a high of 5510 and gave up most of the gains in the last hour to make the day's low of 5422 and closed at 5443. While the confidence still remains low, the positive feature of the day's trading was that Nifty Future did not break yesterday's low - though it is not very far from it. Infosys (and TCS below 1130) and Bank stocks continue to remain concern and have the potential to take the market down.
As we are close to the support at 5380 as indicated yesterday, I would not advise going short at lower levels.
To be safe, fresh long positions may be taken only above 5475 with stop loss of 5435. At higher levels, it will find resistance at 5525 - 5555 - 5605 and 5650. Alternatively, if Nifty does test the lower levels around 5380, one can consider going long (with stop loss of 5340) at the first sign of Nifty Future taking support at this level. At this stage I would like to caution that Bank Nifty Future breaking the previous low of 10384 can stall the recovery in Nifty Future and further dampen market sentiment. Hence, this needs to be factored when taking long position in Nifty Future at lower levels.
Put Call Ratio of Index Options remained almost unchanged at 0.86 as against 0.88 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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