NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a firm opening, Nifty Future went down to make the day's low of 4957. It was in the second session that we saw a sustained rise to the day's high of 5100 and closed the day at 5081. The day's rise can be attributed to the news of higher Advance Tax payments by leading corportaes and partly due to short covering as Nifty Future crossed the 5070 level. On the 3o min chart, you will find that the day's high is near to the Andrew's Pitchfork resistance line.
Another important highlight for today is that, in the oepning session itself Nifty Future mangaed to fill the gap left earlier.
For tomorrow, I would continue my cautious guidance at high levels and also avoid fresh buying. One can consider going short when Nifty Future trades below 5040 with stop loss of 5080. On the down side, fall below 5000 we reaffirm the weakness and fall could accelerate. On the downside, 4950 and 4920 will provide support. Move below 4900 will take Nifty Future quickly to 4800 levels. As the increase in Petrol price may have been announced after the close of markets, the same may not have been discounted in the upward movement of Nifty Future. In case of weakness in the opening session, one can consider going short with stop loss of 5110.
Even if market may have ignored the petrol price hike, what is important is the view taken by RBI on the monetary policy which is schedlued to be announced tomorrow.
I would request the readers - particularly those who are into full time trading, to view the option price data given on www.nseindia.com and is available online during market hours as it provides good insight into the collective wisdom of the market players. For example, at the EOD today, there has been increase in open interest of 10.46 lacs in Put Option of 5000 Strile Price. Overall there has been much increase in open interest of Puts than of Calls leading to put call ratio of 1.13. In case the current rally had much strength, the situation should have been exactly opposite.
As for every Friday, I would once again remind the readers, that if next week has to be weak, we should get the signal in the weekly candle which will form at the end of day tomorrow.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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