NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
Let's look at the good part of today's trading - it did not make a new low. After a firm opening and after two failed attempts to cross 5420, on the 3rd attempt it managed to cross the hurdle to make the day's high at 5445, but gave up major gains by the end of the day to close at 5394 and leaving us virtually where we were at the beginning of the day.
I had indicated yesterday, that we will take a couple of days to come out of the Wedge pattern after which we will be able to cross the 5555 level and see some confidence returning.
Although we did not make a new low today, the way we have close today does leave the possibility open that we can do so tomorrow. After all tomorrow is the 64th trading day from the top (6349) made on Muhurat trading day. Incidentally, Bank Nifty Future did make a new low today at 10341 and thereby making room to go down to 10087 (0.618 level).
For tomorrow, I would once again recommend going long only above 5420 with a stop loss of 5385. On the higher side, we have resistance at 5460 and 5485.
As mentioned above, today's close does open the possibility of a new low - but my view remains unchanged - do not go short at lower levels. As can be seen on the EOD chart we can go down to the lower channel support at 5330 - and hopefully see a bounce.
Considering the coincidence of 64th trading day that too on the date 8th, one would be better off trading in options, unless one has big appetite for risk trading in Futures. As indicated in yesterday's post and seen in today's trading, we will take a couple of days more, before seeing strength returning. We were once leading the recovery but in the current year, US markets seem to have taken over the lead and we are trailing - just like the hare and the tortoise story.
Put Call Ratio of Index Options increased to 0.98 as against 0.91 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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