Tuesday, August 16, 2011

TURNING POINTS FOR 17.08.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:


In a day filled with action even before the markets opened for trading, Nifty Future opened firm on the back of strength shown by US markets. However, this strength could take Nifty Future only to the high of 5140 in the early trades. The strength started receding thereafter (more so after European markets opened weak) and Nifty Future went down to the low of 5006 and finally closed the day at 5028.

We are now at a striking distance from the previous low of 4951. With US markets weak at the time of writing this post there is a good possibility of we breaking this level tomorrow. On the down side, it will find support at 4900-4920 and thereafter at 4770 (.382 level). As mentioned in the weekly post, I expect Nifty Future to bounce from this level. One can consider going long at this level with a suitable stop loss of around 50 points.

Short position should be held with stop loss of 5085.

It would be prudent to sell the puts one has bought, as the time value is eroding very fast - with just about a week left for expiry.

Put Call Ratio of Index Options increased to 1.07 as against 0.98 on the previous trading day.

Please do not trade without STOP LOSS - in these dynamic times.

With Best Wishes,

Ketan Asher.





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