Monday, September 5, 2011

TURNING POINTS FOR 06.09.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
Today's trading started with weak opening and Nifty Future made the day's low of 4954. In the 2nd session, Nifty Future made an up move which took Nifty Future to the day's high of 5023 and closed the day @ 5010. As Nifty Future made lower top /lower bottom today, I would not give much significance to the lower shadow on the EOD candle.The up move in the second session is surprising as European market continued its down move. At the time of writing this post, European market is down by nearly 5%.
I do not think that we can continue the up move - particularly when European markets are bleeding. We may get the effect tomorrow. Hence, short position may be taken with a stop loss of 5075. On the down side, it will find support at 4950 - 4920 and 4865. Break of 4865 may take Nifty Future to test the previous low of 4700. In view of the big fall in European markets, buying should be avoided till things settle down. One can consider buyinng put options of 4700 strike price which were trading @ Rs. 47/- at the close.
Put Call Ratio of Index Options increased to 1.17 today.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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