Wednesday, March 9, 2011

TURNING POINTS FOR 10.03.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a steady opening, Nifty Future maintained downward bias in the first half of the trading session and made the day's low at 5478. Thereafter, Nifty Future made a sharp up move and made the day's high at 5573 and closed the day at 5542. Once again, we have good buying support at lower level and the EOD candle has long lower shadow and has made higher top and higher bottom. The point to be noted is that despite the apparent bullishness, we are yet to see Nifty Future close above 5555 - key level referred to many times.
Another interesting coincidence marked on the EOD chart is that today's trading day is away by 44,64 & 84 (gap of 20) day's from the previous top. While primafacie it is just a coincidence, but quite a unique one and hence the mention. Is it trying to indicate something? Well we should know tomorrow!
While today's candle does indicate possibility of bullishness tomorrow, but considering the hurdle at 5570, I would not advise long position for tomorrow.
Short position should be taken below 5475 with a stop loss of 5510. On the down side it will find support at 5440, 5400 and 5375. Weakness will accelerate below 5375.
Put Call Ratio of Index Options marginally decreased to 0.97 as against 1.02 yesterday.
Please do not trade without STOP LOSS, particularly in light of the coincidence mentioned above.
With Best Wishes,
Ketan Asher.

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