NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
After a steady opening and making the day's low of 5460 (just 2 points above the previous day) Nifty Future maintained upward bias throughout the day. In the last hour, it made the day's high of 5550 and closed firm at 5546. We are now close to the resistance level of 5555-5570.
Though little unconventional, but a noteworthy coincidence - we had 5 days down and 5 days up to cover almost the same distance. We are now close to mid point as well as near to the trend line (in blue and again unconventional but has provided resistance on 2 earlier occasions). Though, the market has closed firm, I continue to maintain that these resistance may not be easily breached.
Secondly, a fall from here will now give us a right shoulder on the EOD chart if Nifty corrects even up to 5365. Once this correction is done we have a head and shoulder target which can take us up to about 6000 around budget time. This is how I see market shaping up in the coming days and needs to be reviewed during market hours and it will get nullified if Nifty Future crosses 5570!
In view of the above, I would not advise fresh buying at higher levels. Short position may be taken at the first sign of weakness in the opening session with stop loss of 5600 or to be safe one can consider going short below 5485 with stop loss of 5525. On the down side it will find support at 5445 - 5420 and 5365. Fall below 5484 could be sharp.
Put Call Ratio of Index Options increased to 1.20 as against 1.05 on the previous day.
Even if you share the view given above, please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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