NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a hesitant start, Nifty Future maintained positive bias and gathered momentum after mid-session. During the day Nifty future made a low of 5641 and high of 5752. It did close firm at 5745.
While the rise may be bringing smiles to all, as we go higher, we are entering critical zone as the ground realities remain the same as they were about two weeks back when we bounced from a low of 5182. The only factor that may have changed is the FII money flow.
As indicated in last weekends' post we have room to go up to 5950 this month.
Coming back to the technical factors - after today's up move, we are close to 200 DMA which is at 5756 and another significant level indicated in the TP Grid - 52 Week mid point at 5762. These levels, coupled with trend line shown in the EOD chart may act as strong resistance tomorrow. As regards 200 DMA, I would like to add that the MA itself has now started its decline as can be seen on the EOD chart.
While it may be premature to call the end of this strong up move, it will definitely be helpful to have a healthy correction so that the up move becomes much more sustainable. In view of the above, I would not advise going long tomorrow. As a contrarian move, one can consider buying 5500/5600 Puts or go short when Nifty Future approaches near 5800 levels, with stop loss of 5815. On the downside, it will find support at 5685, 5660. Major weakness may be expected only below 5600.
Put Call Ratio of Index Options decreased to 0.91 as against 1.05 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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