NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future opened with a gap and remained firm throughout the day to make a high of 5468 and closed firm @ 5456, near the high of the day. The up move was sharp enough to take the indices above the previous weeks' high and compared to the fall of over 1000 points (in 26 days) we are up 293 points - just in 2 days. While the fast up move did give relief to many, one needs to be extra careful in the coming days, as we have approached the resistance area too fast.
For tomorrow, while existing long postions may be trailed with a stop loss of 5400, I would not advise fresh long position at higher levels. On the higher side, 5485-5500 and 5555 - 5570 range could act as a hurdle and result in a sharp down move. Those who have bought Nifty Future calls will do well to liquidate the same when Nifty Future trades near the 5500+ levels. In the event of a down move, these can be considered for buying again at the lower levels.
Short position may be taken at 5555-5570 with stop loss of 5600. As a contrarian (and safe) trade, one can even consider buying 5300 puts at about Rs. 15/- or so. On the down side, 5400 - 5350 and 5300 will provide support. As such, it is safe to assume, that if market can have a sharp move up, it can equally fast give up all the gains too - just as it did last week.
In case of Bank Nifty Future, 10900 and 11000 may provide strong resistance in the coming days.
Though unrelated, I would like to inform the readers, that Dow has reached a major resistance level (see updated chart) and hence may see correction any time now. This too can have some negative effect on our markets.
Put Call Ratio of Index Options increased to 0.91 as against 0.78 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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