NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
After a firm opening and making the day's low of 5509, Nifty Future went up to 5660 and remained sideways for some time. In the second session it continued the up move to make the day's high of 5578 and closed at 5563 - marginally lower than the day's high. You will observe on the 30 min chart that Nifty Future has found resistance at the Andrew's Pitchfork median line. Secondly, it is in a wedge formation (shown in yellow shade).
Considering today's resistance area and the pattern referred above suggest that for tomorrow, further up move is possible only above 5580 and in the event Nifty Future breaks out of the Wedge on the down side, we may see a sharp fall. On the EOD chart, I have marked a Head & Shoulder pattern with a break out at 5600.
In view of the resistance referred above, I would not advise fresh long position unless Nifty Future is able to break above 5580 (Stop loss 5555). On the higher side, we have resistance at 5600 and strong resistance at 5560-5675 level.
In the event, Nifty Future breaks the Wedge pattern on the down side, one can consider going short below 5540 with a stop loss of 5560. It will find support at 5525 - 5500. Existing long positions may be trailed with a stop loss of 5555.
Put Call Ratio of Index Options increased to 0.98 as against 0.91 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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