NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
After a firm opening, Nifty Future went down to the day's low of 5524 and thereafter remained listless/boring for the better part of the day except the last hour when it showed some strength when it moved out of the Pitchfork referred in yesterday's post. However, we need to note that it lacked the spark which is normally associated with such breakouts. Finally it closed the day within 54 point range near the high of the day at 5565. It must also be noted that we have been moving in 161 points range for 6 trading days and going no where. Though it may be little premature to mention that a bearish flag formation is taking place as marked on the EOD chart. While today we are nearer to the upper range of the flag, where as lower range for the downside breakout at 5455 is little far. Break above 5620 can cancel this bearish pattern.
Looking at the above referred pattern and considering the sluggishness shown by the market, I would advise long positions only above 5620 or are best avoided for the remainder of this week.
Short positions may be taken below 5535 with stop loss of 5565. On the downside, it will find support at 5420 and 5393.
Put Call Ratio of Index Options decreased marginally to 0.88 as against 0.92 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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