NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, Nifty Future opened with a gap to make the day's high of 5612, but could not sustain at higher levels and remained weak throughout the day to make the day's low of 5518 and closed the day at 5536. It may be noted that despite attempts to go up during the last week, Nifty Future has not been able to close above the often repeated resistance level of 5555. Secondly, considering the upper shadow on the candle for the last two sessions indicates that there has been selling at higher levels.
On the EOD chart, you will find that 50 SMA has cut the 200 SMA (5663), which by itself is a bearish signal.
Going by the media reports that DMK plans to withdraw support to the UPA Govt. could lead to weak opening tomorrow. It is better not to go short in case of gap down opening.
Short position may be considered below 5490 with stop loss of 5535. On the down side, it will find support at 5460 and 5420. Please note that bearishness accelerates only below 5375, hence one need not panic at a weak opening tomorrow.
Considering the reasons given in the weekly post, I would not recommend long position at higher levels.
Put Call Ratio of Index Options increased to 1.09 as against 1.01 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
No comments:
Post a Comment