Sunday, March 20, 2011

TURNING POINTS FOR 21.03.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
In Friday's trading, Nifty Future remained weak throughout the day and not only broke the triangle, but also closed outside it - suggesting weakness. It made the day's high at 5502 and low at 5580. It closed the day at 5387. As was being mentioned in my post last week, weakness accelerates only below 5375. We are now at that point and in that respect next week becomes important - that too starting the week with important Gann date.
For tomorrow, it is important to see whether, Nifty Future trades below 5375 to confirm the weakness and short positions should be monitored with strict stop loss of 5420 as we are once again near the lower end of the 13 day range. On the down side it will find support at 5310 - 5265 and 5220 level.
As the triangle has been broken on the EOD chart, I have shown the pattern target of 5020. However, it must be noted that there are many support areas where Nifty Future can take support and bounce one more time. Please do factor the possibility of all round feel good factor once when Japan Nuclear Leak issue is brought under control.
Considering the weakness displayed by our markets on Friday (led by Reliance and Infosys), I would not advise going long at these levels as weight of evidence is in favor of Nifty Future seeing lower levels.
Put Call Ratio of Index Options was at 0.92 as against 1.01 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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