NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a weak opening, Nifty Future remained in a narrow range for better part of the day. In the second session, it made a high of 5502 but thereafter gave up all the gains and made low of the day at 5427 - marginally lower than the previous day. The good part of the day's trading was that it did not breach 5420 and on the EOD chart the set up for the Inverse Head & Shoulder is intact - as of today.
Effective tomorrow, we are entering a volatile days ahead. Starting with FNO settlement and ending with Budget session on Monday. Nifty Future is at a crossroad, whereby below 5420 it has the potential to go down to 5330. On the higher side, if 5520 is breached, it can go to 5600 and above it 5675. Oscillators set up on the EOD chart suggests that we are likely to go up - fall in the US markets notwithstanding. In this connection, I would like to highlight that when compared to the base date of 1.1.2011 - DOW is + 5% where as Nifty Future is -12%.
As regards tomorrow, Trade if you must and can digest higher volatility. On the down side, one can consider going short below 5420 with stop loss of 5450. At lower levels, we have support at 5380 and 5330. As mentioned yesterday, I expect 5330 support to hold at least for now.
You will need to change the view to positive above 5520. When this happens, we can go up to 5600 and 5675.
Put Call Ratio of Index Options decreased marginally to 0.98 as against 1.05 yesterday.
Please do not trade without actually putting stop loss in the system.
With Best Wishes,
Ketan Asher.
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