NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, Nifty Future did manage to go up to make the day's high of 5522 (and low 5429) but gave up majority of the gains by end of the day to close at 5485. On the 30 min chart you will observe that the trend line in Red has provided strong resistance. Similarly on the EOD chart you will observe that Nifty Future has closed below the breakout level of the Inverted Flag (in Blue) and has also left long upper shadow on the EOD candle - both suggesting weakness.
At the cost of being repetitive, I would not like to miss the opportunity of pointing out the effectiveness of the TP Grid. On Friday, weekly mid point for Bank Nifty was given as 10745 where as the day's high was 10744.40. Incidentally, it closed the day much lower at 10666. So much for the effectiveness of a simple idea. If this idea helps some more people to make money, I will be happy about it and hence the mention - time and again.
For tomorrow, it would be better to go short below 5465 with stop loss of 5500. On the down side, it will find support at 5420, 5393 and 5350 (previous bottom).
Long positions are best avoided at the moment as even above Friday's high of 5522, we have multiple resistance area viz. 5555 and 5567.
Put Call Ratio of Index Options increased to 0.87 as against 0.76 on the previous trading day.
Please do not trade without STOP LOSS as we are now entering FNO settlement week and hence volatility will be much higher.
With Best Wishes,
Ketan Asher.
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