Tuesday, March 15, 2011

TURNING POINTS FOR 16.03.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In contrast to the strong closing yesterday, on the back of weak Nikkei and other Global Markets, Nifty Future opened with a downside gap and made the day's low of 5375 - the level referred to in my post for the past few days. It saw sharp up move to the day's high of 5505 and closed at 5448. On the EOD chart you will find that the closing is below a small trend line suggesting weakness. Add to that weakness in US & European markets at the time of writing this post, it does seem likely that we could go below 5375 tomorrow.
For tomorrow, one can consider going short below 5420 with a stop loss of 5460. On the down side, it will find support at 5375 and thereafter the weakness will accelerate. On the down side Nifty Future will find support at 5300 - 5270 and 5230. Considering the reasons given in the weekly post, it is best to avoid buying Nifty Future at lower levels, as break of 5230 will start a fresh down move.
Once again I would reiterate that long positions are best avoided in these uncertain times where no one really knows the implications of a nuclear disaster. I guess things should settle down by 21st March which happens to be a Gann turn date.
Put Call Ratio of Index Options increased to 1.30 as against 1.08 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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