Monday, February 21, 2011

TURNING POINTS FOR 21.02.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
Friday's trading saw a good rise up to 5589 in the morning session but gave up all the gains to make the day's low at 5436 and closed the day at 5454. While the fall had been steep, please see it in context of 5555 level and the trend line (in blue) which has now been the hurdle for the 3rd time. Next time around when this is broken decisively, we can see some more upside. May be, Nifty Future has come down to form the right shoulder as indicated in Friday's post. I will mark the Neck line in tomorrow's post. We must also see our markets in context of Global markets, which are fairly buoyant.
For today, further down side should be considered below 5420. If this is breached, one can go short with strict stop loss of 5450. On the down side, it will find support at 5380 and 5330.
In the event Nifty Future goes above 5485 (that too without breaking Friday's low of 5436) one can consider going long with stop loss of 5455. Considering that the trend line (in blue) has been providing resistance on past 3 occasions, this time I would expect it to cross the same to go for the next strong resistance at 5640. I do not expect this to be cleared at the first attempt considering that this is a 200 DMA level and also a trend line resistance.
Looking at the oscillators on the EOD chart, I am more inclined for a positive bias than a negative one and short sellers may do well to cover up short positions at lower level, if the same is available today or at least have a tight stop loss.
Put Call Ratio of Index Options remained almost unchanged at 1.21 as against 1.20 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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