NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a firm opening today, Nifty Future could not sustain at higher levels, so much that it did not cross yesterday's high of 5710 - giving the first indication that all was not well. It did struggle for a while and waited till the announcement of the RBI policy. Once it was know that RBI has increased the rates by 0.50% as against the expectation of 0.25% - Nifty Future collapsed in no time. During the day, Nifty Future made High of 5709 and Low of 5555.55. It finally closed the day at 5574. It would be interesting to see on both the charts how well Andrew's Pitchfork has provided exact support for today's low.
Considering that Nifty Future has taken support at the much referred level of 5555, I would suggest going short only when Nifty Future trades below 5530 (recent low) with a stop loss of 5560. On the down side, it will find support at 5470 and 5400-5420. One can consider going long at this lower level, preferably buying call options for AUG 2011 and that too for a bounce.
On the higher side, 5630 and 5675 will provide resistance.
Put Call Ratio of Index Options decreased marginally to 0.97 as against 0.99 on the previous trading day.
Please do not trade without stop loss as market volatility may increase as we are approaching FNO settlement in just two days.
With Best Wishes,
Ketan Asher.
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