NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
Finally, Nifty Future gave way when it went below 5350. Though we blame it on the review of the Tax Treaty with Mauritius, I would just say that for an otherwise weak market, it provided a good reason to precipitate into a big fall. Looking at the bounce from the previous low, I hope we are done for the fall - at least till the FNO settlement date. Tomorrow is also a important Gann turn date and hence I consider it as another good reason to believe that the bounce from this level is imminent.
In view of my upward bias for a bounce, I would suggest buying 5400 Call option which is trading at about 24. If you share my view that Nifty Future has to bounce from this level, you can also consider buying stock future and hedge it with an out of money put option to protect yourself. The battered stocks like Rliance, Tata Motors, IDFC are just a few i find worth considering. I would hasten to add, with today's fall the market has only got weaker, hence it is not advisable to buy a naked future. If at all the bounce materialises as I expect, 5400 becomes a strong resistance level.
I would not advise going short at lower levels.
Put Call Ratio of Index Options increased to 0.89 as against 0.80 on the previous day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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