NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, after a weak opening, Nifty Future made a new weekly low of 5465 and thereafter made a sharp up move to make week's high of 5622. On the EOD chart, you will find that the day's candle has touched both the lines drawn for Inverted flag. The fact that the price action has remained within this range, it has not disturbed the Inverted Flag pattern. This combined with announcement of steep price hike for petrol (and to be followed soon for Diesel) does indicate that the Inverted flag pattern may see a breakout below Friday's low of 5465. The breakout results in a price target for Nifty Future at about 5000.
Considering the steep price hike, there is a possibility of Nifty Future opening weak. One can consider going short when Nifty Future remains below 5555 with STOP LOSS of 5580. On the down side, it will find support at 5465 - 5420 and 5393. As is being mentioned in my post regularly, the major downside is possible only below 5300 and hence at lower levels one needs to be cautious of remaining short.
In view of the negative announcement, it is not advisable creating fresh long positions till Nifty Future shows signs of stabilising.
Put Call Ratio of Index Options remained almost unchanged at 0.89 as against 0.88 on the previous day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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