NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD / RIL WEEKLY
NIFTY FUTURE:
In the opening session Nifty Future maintained downward bias and went down to make the day's low of 5411 and in the last session made a sharp turn around to make the day's high of 5539 and closed the day at 5528 - near the high of the day. The turn around was led by IT, Banks, ONGC, and Reliance Industries. With announcement of a deal between RIL and BP(may be after market for us), RIL GDR (in London Stock Exchange) is trading at about + 7%. This will definitely have its positive impact in the opening session tomorrow.
In the opening session Nifty Future maintained downward bias and went down to make the day's low of 5411 and in the last session made a sharp turn around to make the day's high of 5539 and closed the day at 5528 - near the high of the day. The turn around was led by IT, Banks, ONGC, and Reliance Industries. With announcement of a deal between RIL and BP(may be after market for us), RIL GDR (in London Stock Exchange) is trading at about + 7%. This will definitely have its positive impact in the opening session tomorrow.
This news could take Nifty Future above the trend line in the opening session itself and then the scramble for short covering could do the rest. As a rule, I do not favour buying in Gap open and hence those who are long today should trail their long position in the opening session just below today's high of 5539. On the higher side, it will find resistance at 5640 and 5680 for multiple reasons. However, with a positive announcement in a heavy weight stock like RIL can help cross any resistance levels easily. In all this enthusiasm, we must not forger that European markets are weak and thankfully US markets are closed for today. In my view, it will be prudent to sell when Nifty Future reaches the resistance levels indicated above.
I have drawn a Neck line (in blue) for the Inverse Head and Shoulder (bullish) on the EOD chart which gives a target of 5989 (say 6000) once Nifty Future trades above 5590. With FNO settlement just on the 3rd trading day from here, bulls couldn't have asked for more. These type of post market announcements and the consequential effect on the market, the next trading day, further reinforces my faith in the Turning Points Grid kind of method.
Put Call Ratio of Index Options decreased to 1.06 as against 1.21 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
PS : In view of major announcement by RIL, I have also attached Weekly chart with my comments on it.
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