NIFTY FUTURE WEEKLY
The week that went by, gave us a new low of 5182 - almost a double bottom from the previous low of 5175. Last Friday's rise to the high of 5491 gave us 309 point range for the week. It closed at 5484 - near the high for the week. Though Friday' s mad rush to cut shorts gave us a good range, it has still maintained lower bottom / lower top for the week, but with a long lower shadow. Interestingly, the close is above the trend line at 5350 which was broken during the week and led to a swift fall.
After the market hours on Friday, the Govt. has announced a hike in diesel price and that could influence the opening session - although this hike was much anticipated. Secondly, looking at the way DOW closed last Friday, weakness in US markets is also likely to accentuate in the days to come. In light of these two negatives, can we sustain this rise beyond the FNO settlement?
Considering the negative effects of the diesel price hike which will start affecting the Inflation figure in a week or so, I do not think much should be read in this rise, except the technical factors and the FNO positions of the market players.
At this stage I would like to reiterate that the 46 weeks trading zone marked on the attached chart is going to provide good support and will need some extraodinary event to break the same.
Have a nice weekend!
Ketan Asher.
No comments:
Post a Comment