NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, Nifty Future once again faced tough resistance at 5600 (exact high of 5609) and in second session came down sharply to make the day's low of 5509 and closed marginally higher at 5524. The fall was largely accounted by Reliance and Bank stocks. Another unique point about Friday's fall was that many stocks viz. LT, M&M, Maruti, Infosys etc remained firm. Similarly, in Bank Nifty too there were scrips like ICICI Bank, Kotak Bank, HDFC Bank that remained firm. Thus weakness was restricted to a few items only.
Considering the weakness in US markets, we can expect a weak opening on Monday. However, as shown on the 30 min chart, on Friday Nifty Future has taken support on the trend line (in Brown). Immediately below we have support of another trend line (in Blue) at about 5500 level. Moreover, immediately below it we have major support at 5470. As mentioned in the weekly post, the market will get very weak only if previous bottom of 5441 is broken. Hence, it would be a good opportunity to go long around 5470 with a stop loss of 5440.
In view of the above, I would not advise short position and instead wait for Nifty Future to come down to the level of about 5470 to go long with a strict stop loss of 5440.
Put Call Ratio of Index Options increased to 1.09 as against 1.39 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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