Monday, May 30, 2011

TURNING POINTS FOR 31.05.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:

As expected, Nifty Future faced strong resistance despite having a firm opening in today's trading. During the day, it made a high of 5497 and low of 5441 and finally closed the day at 5467. You will find on the 30 min chart that today's price action has remained below the Andrew's Pitchfork despite having a firm opening just above it.

Considering that Nifty Future had some buying support at today's lower levels, the EOD candle does leave some hope that there could be some upside left. However for this to materialise, Nifty Future has to move above 5500. For tomorrow, I would not advise long position as even if Nifty Future manages to cross 5500, it has to face resistance at 5550 - 5570 levels. In the event, Nifty Future fails to go above the 5500 levels in the morning session, we may see stronger down move that will accelerate below 5440. Short position may be considered below 5440 with stop loss of 5475. On the down side, it will find support at 5400-5420. Once below 5400, it may quickly go down to test the previous low of 5330. Tomorrow is the last trading day for the month and any close below 5400 will indicate bearish stance for the next month.
Put Call Ratio of Index Options remained almost unchanged at 1.08 as against 1.09 on the previous trading day.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

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