TURNING POINTS FOR 13.09.2011

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In sync with the weakness in overseas market, Nifty Future too opened with a down side gap. During the day, after making the day's top of 4979 in the early trades, it made a low of 4901 - exactly on the trend line shown on the 30 min chart. As expected, NIfty Future bounced sharply from the day's low, but could not cross the day's high made in the early session - may be due to persisting weakness in the Eurpoean market.
For tomorrow, one can consider going long with stop loss of 4900. Those not willing to take risk may go long above 4980 with stop loss of 4940. On the higher side, it will face resistance at 5040 and major resistance at 5075. This being a pull back - may be to fill the gap, I would not advise going long except for trading purpose with strict stop loss of 4940. In the unlikely event of Nifty Future breaking 5075, there could be a remote possibility of Nifty Future testing 5200 level.
As I believe that Nifty Future will hold today's low of 4900, I have not considered going short. I do hope, US/European markets will provide the necessary impetus for us to hold today's low and help us to fill the gap left today.
Put Call Ratio of Index Options remained almost unchanged at 1.09 as against 1.07 on the previois trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.