Tuesday, July 19, 2011

TURNING POINTS FOR 20.07.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD


NIFTY FUTURE:


Contrary to my expectation, Nifty Future did not open weak and as such did not even go below the critical level of 5555. The EOD chart does not reflect the correct picture as Nifty Future had a Open=High=5562.


Though the day started weak and made a low of 5562 - just 2 points above yesterday's low. As Nifty Future did not get weak, in the 2nd session it saw a sharp up move which took Nifty Future to high of 5642.


Inspite of today's up move, I would not advise fresh long position as Index Options data shows that 5600 Call Options position was reduced where as Put options of 5500 and 5600 got added. To me this indicates weakness.


Fresh short positions may be considered below 5590 with stop loss of 5625. On the down side it will find support at 5555 and weakness will accelerate below 5555.


In the unlikely event of Nifty Future going up, it is advisable not to remain short above 5700.


Put Call Ratio of Index Options increased to 0.89 as against 0.85 yesterday.


Please do not trade without STOP LOSS.


With Best Wishes,


Ketan Asher.

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