NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
On Friday, Nifty Future opened with a downside gap and went down to make the low of 5115 and bounced back sharply to close the day at 5211.
This is old news, in the light of down grading of US credit rating after the close of US makrets on Friday. It is common knowledge that we will be facing the aftermath of this rating tomorrow and am sure it will be chaotic, to say the least. How this credit rating will affect the World markets itself is a subject of debate and is being dealt with by experts on various channels. Before we start trading, we will get some guidance from Asian markets as well as SGX Nifty.
For tomorrow, one can consider going short below 5165 with stop loss of 5215. On the down side, it will find support at 5000, 4920 and finally at 4770 which is a previous support as well as .382 level as shown on the Weekly chart.
Will we do too bad tomorrow? I wish I had the answer.
Tomorrow's market will be largely driven by the fear factor amongst the traders as well as the intensity of FII selling. Hence, any attempt to guess the levels is a futile excersie. It will be better to stay aside for a day or two, till the things are clearer and we also know how the US market reacts tomorrow.
Those holding puts will do well to sell them and book profits at every level indicated above. After all, just like fear, greed too is a traders biggest weakness. Before tomorrow's opening session please avoid watching various channels and read too many opinions - as they may not help you much but only cloud your own judgement. Better to let the market open and face the situation as it evolves.
It is best to avoid bottom fishing - unless you know the bottom. Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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