Tuesday, September 6, 2011

TURNING POINTS FOR 07.09.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :

On the back of weak Eurpoean markets, Nifty Future too opened weak and went down to the day's low of 4932. Thereafter, in the second session, Nifty Future made a sharp up move - led by Reliance, M& M and Banking sector too. Nifty Future made a top at 5072 - the same level which we saw just last Friday. Interestingly, it has come close to the Andrew's Pitchfork shown on the EOD chart. The day closed at 5061.

For tomorrow, for Nifty Future to rise further, it has to stay above 5075. One can consider going long above 5075 with strict stop loss of 5040. On the higher side, it will find resistance at 5100 and strong resistance at 5165-5200. For this rally to sustain, I would expect Reliance to remain above 800. It would be advisable not to remain short once Nifty Future clears 5100 as it can go up to 5200 or may be up to 5300 to fill the gap.

The first sign of weakness will be when Nifty Future trades below 5040. One can consider going short below 5040 or below 5000 depending on your risk profile - with stop loss of 5075.

On the down side it will find support at 5000 - 4950 - 4920.

Considering the weakness in World markets, caution is advised at higher levels as one more down move is a distinct possiblility.

Put Call Ratio of Index Options remianed almost same at 1.14 as agianst 1.17 yesterday.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

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