NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD NIFTY FUTURE:
Last Friday's trading ended near the week's high - that too after breaking out of the sideways movement for the past few weeks on the EOD chart. However, as can be seen on the EOD chart, the high for Friday at 5693 is just at the 50% level as well as 200 DMA which for Friday was 5700 - a nice coincidence! Generally, 200 DMA act as a support/resistance at least for once. If that is going to be true this time too, we should see a correction next week as we have left Gaps on the last two days i.e. around 5500. This level will also provide trend line support too as can be seen on the EOD chart.
Considering that the close for the day/week has been strong, we may have a strong opening tomorrow, but further up, we have 5730 as a strong resistance. Hence fresh buying should be avoided at higher levels. In case of first sign of weakness, once can consider going short with 5730 as a stop loss. On the down side 5600 - 5565 and 5525 will provide support. Now, weakness will be seen only when Nifty Future trades below 5500.
Put Call Ratio of Index Options decreased to 1.08 as against 1.22 yesterday.
As mentioned in the weekly post current levels offer good opportunity to sell delivery based stocks as the reasons for which market fell, have not changed much.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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