Wednesday, July 20, 2011

TURNING POINTS FOR 21.07.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD


NIFTY FUTURE :


In today's trading, Nifty Future opened firm and made the day's high of 5654, but could not sustain at higher levels (as anticipated yesterday in my post). It maintained downward bias throughout day, although the fall accelerated once Nifty Future broke 5611 (mid point for the week given in TP Grid) and made the day's low of 5554 and finally closed @ 5570. As shown in the EOD chart, the size of the candle does indicate as a key reversal day and moreover it has decisively closed below the Trend Line on the EOD chart. The only comforting factor for the bullish view now is that today's low is just at the level of 5555 referred often by me as a key level and has closed marginally above that level.


In view of the above, I would not advise any bullish trades and would change my view only if Nifty Future closes above 5630 tomorrow- which looks very unlikely - looking at today's EOD candle. As such, short positions may be held with STOP LOSS of 5610 or 5630 depending on individual risk apetite. One can consider going short below 5550 with stop loss of 5610. On the down side, it will find support at 5540, 5500 and 5470.


Put Call Ratio of Index Options increased to 0.96 as against 0.91 yesterday.


Please do not trade without STOP LOSS.


With Best Wishes,


Ketan Asher.


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