NIFTY FUTURE 30 MIN / NIFTY FUTUR EOD
NIFTY FUTURE :
And finally, FNO settlement got over amidst lot of volatility and with Nifty Future closing with upward bias. The day's trading started on a firm note but thereafter saw sudden down move but did not brake the day's low of 5354 formed in the morning session. In the last hour, it suddenly shot up to make the day's high of 5414 and closed the day firm at 5402. The up move was led by Reliance and Nifty Future made a higher top and higher bottom on the EOD chart - suggesting strength.
On the EOD chart, you will observe that we have closed today just at the trend line (in Blue) indicating up move if the Trend Line is crossed in tomorrow's session or else we continue the down move. Considering the strong close, I will consider the bias to be positive as long as Nifty Future remains above 5400. Another important indication of strength will be the ability of Nifty Future to cross the 5420 level.
In view of the above, I would advise long position above 5420 with stop loss of 5400 (or better still 5380). On the higher side, it will find resistance at 5440 and 5475.
Fresh short position may be taken below 5380 with stop loss of 5420. On the down side, it will find support at 5350. Below 5350, Nifty Future will, in all likely hood break 5300 and weakness will accelerate. Although, considering the Friday effect, I would consider the probability of breaking 5300 to be very low.
Put Call Ratio of Index Options increased to 0.97 as against 0.85 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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