NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading, Nifty Future opened weak and after the announcement of the Credit Policy, and once below the support at 5700 - fell sharply. During the day, Nifty Future made a high of 5726 and low of 5560. It closed weak @ 5569 - near the low of the day. Bank stocks took a strong beating and Bank Nifty future fell by over 3%.
After today's fall, we are once again close to the key support level of 5555 and also near the gaps left at 5553 and 5504. As shown on the EOD chart, we have a trend line support (in brown) at 5500. While we have to meet the target of 5393 left a few day's back, I expect Nifty Future to bounce once the gap is filled. This bounce can go up to 5700.
In the event 5500 level is broken, Nifty Future will go down to the level of 5393 or to the previous support of 5357.
As Nifty Future is quite over sold on the 30 min chart, I would expect it to fill the gap up to 5500 and bounce from that level. In view of the same, one needs cover short positions or at least trail them with tight stop loss.
For tomorrow, one can consider buying 5600 call option when Nifty Future trades near 5500 and takes support at that level. On the higher level, Nifty Future will find strong resistance at 5675-5700 level. It would be better to create fresh short position at this level with stop loss of 5735.
Put Call Ratio of Index Options decreased to 0.75 as against 0.90 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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