TURNING POINTS FOR 28.02.2011

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE:

After a strong opening and making the day's high of 5347, Friday's session remained volatile, with Nifty Future making a new low for the week at 5233. However, in the second session once again the strength emerged to close the day at 5313.

With a major event like Finance Budget tomorrow, Nifty Future is poised in such a way that above 5420 it gets strength and below 5175 it gets weak. As regards the break of 5175, I must mention that we have unfilled gaps at 5138 and 5092. Hence, Nifty Future can come down to fill these gaps and bounce from these levels. As I have been mentioning for the past few days, the oscillators - particularly RSI is not suggesting too much bearishness and hence my optimism for the up side.

For those who must trade, long position may be considered in the opening session with stop loss of 5280. On the higher side, it will find resistance at 5385 and 5420. In view of the higher volatility, one can consider going short at the resistance levels with suitable stop loss.

Ideally on the day of major event and uncertainity of its impact on the markets, it is prudent not to have trading positions. Either one can be on the side lines, or one can do buying in cash market on delivery basis.

Put Call Ratio of Index Options decreased significantly to 0.85 as against 1.01 on the previous trading day.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.