Thursday, March 17, 2011

TURNING POINTS FOR 18.03.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
On the back of fall in US markets, Nifty Future opened weak, but showed strength by making an attempt to go up and made day's high of 5529. In the second session, Nifty Future started getting weak and broke the low made in the morning session and made the day's low of 5450 and closed at 5467. At the end of it all, we made a lower top / lower bottom - a sign of weakness.
It should be noted that, we are trading within 5575 and 5375 range for the past 9 trading days. Moreover, I have marked a triangle on the EOD as well as 30 min chart and we have closed almost in the middle. Hence, unless this range is broken on either side, the markets will continue to remain volatile and directionless.
For tomorrow, fresh short positions may be considered below 5450 with stop loss of 5480. On the downside, it will find support at 5400-5420 range, Once this is broken, the fall may accelerate.
While I would not advise long position, but considering the resilience shown by our markets, one needs to be careful about short positions as well. In case Nifty Future breaks 5570, there is a good possibility that we may see Nifty Future to go up to 5700 levels. Just factor the possibility of Japan averting Nuclear disaster could take the markets up - at least as a kneejerk reaction.
Put Call Ratio of Index Options decreased to 1.01 as against 1.21 yesterday.
Tomorrow is the last trading day of the week and we are also very close to the apex of the triangle on the EOD chart, and breakout in either direction could be sharp, hence please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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