NIFTY FUTURE WEEKLY
During the week, Nifty Future traded in 158 points range (High 5623 & Low 5465). The interesting part being that the weeks' high and low were recorded yesterday. While yesterday's sharp up move (as indicated in my post previous day) may have surprised many and that resulted in short cutting which took Nifty Future above 5580 to the next resistance of 5620. As I will be dealing with the Friday's price action in my regular post for Monday along with EOD chart, I am not repeating the same here.
Due to the sharp up move, there is a lower shadow on the weekly chart and the fact that Nifty Future has not broken the previous week's low, one may tend to hope that worst is over for the market. In my view, this small range week may even turn out to be a lull before the storm. For this purpose. on the down side 5300 should be closely watched. Once market moves below this level, break of previous low of 5175 seems imminent. We now have to factor high Interest Rate and higher Oil Price which may further accelerate inflationary pressure and also erode profitability.
In case of Dow once it starts trading below 12500, we may see a fresh down move starting.
Another interesting fact I would like to highlight is that next week (18th May) we will have 2nd Anniversary of the historic Gap up opening post the Election Results.
Just don't get carried away by the one day sharp up moves and protect your long positions carefully when Nifty Future trades below 5555. All in all, a time to be very cautious.
Have a nice weekend!
Ketan Asher.
Nifty figures in line 6 should be 5620 and not 5520. Please check
ReplyDeleteYes U r right. Thanks for pointing out the error.
ReplyDeleteMy apologies for the error.
Ketan Asher.