NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading, although Nifty Future opened with a gap, it remained hesitant in the early hours and came down to the day's low of 5078, and without filling the gap started going up to make the day's high of 5149. At this level, it corrected itself and closed the day at 5117. Today's candle is having a small upper shadow, suggesting cautious approach at higher levels.
While US / European markets are trading up at the time of writing this post, we must not forget that we have already corrected over 9% at today's high. On the back of good Global cues, we may open firm tomorrow, but have strong resistance at 5200 levels. As shown on the EOD chart, we have trend line (in Blue) resistance as well as 50% level of the swing. I do not expect Nifty Future to cross this resistance in the first attempt and may have a strong pull back from this level. I would suggest it is better to liquidate long positions at higher levels and wait for the markets to correct.
For tomorrow, we can consider going short when market trades about 5175 - 5200 range with stop loss of 5225-5250 levels. On the down side, it will have support at 5100-5070 and 5020. Alternatively, one can consider buying 5000 Put Option or sell 5300 call option when Nifty Future trades at higher levels.
I would like to add that Bank Nifty Future has strong resistance around 10000 and hence one needs to be cautious about long positions.
As being mentioned by me in Weekly post, we still have one more down move - if not lower, at least to make a double bottom - before we can say that the worst is over.
Put Call Ratio of Index Options decreased to 1.05 as against 1.14 on the previous trading day.
Please do not trade without STOP LOSS - as markets can get quite volatile at higher levels.
With Best Wishes,
Ketan Asher.
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