NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
One more narrow range day, when Nifty Future made a high of 5174 and low of 5113. Today's high 5174 is an exact double top after which Nifty Future came down to make the day's low of 5113 and closed at 5141. While the set up does not suggest any bearishness, except the fact that Nifty Future retraced after making a double top and this should be considered worrisome for continuation of the up move. Interestingly, Bank Nifty Future shied away from the double top just by 6 points (previous top 9960).
At the time of writing this post, Europe is down by about 2% and US is waiting for the new twist that Fed announces sometime later today. While our opening session too will be guided by the way US markets close today, we must bear in mind that 5200 level is becoming a tough level to breach. As my bias remains negative, I would advise going short when Nifty Future trades below 5100 with stop loss of 5145. On the down side, it will find support at 5080. Fall below 5080 will accelerate the fall with support at 5040 & 5000. Please avoid buying at lower levels as there is good possibility of testing 4700 - 4800 level can not be ruled out yet.
Fresh long positions are best avoided even if Nifty Future is to break the 5174 level in the opening session, in the event of positive twist to the US markets, after announcements by the FED.
In the Index Option data, there has been unwinding of Call position and considerable increase in open interest on the Put side. I am sure most of you must now be reading the data available live on the NSE website.
Though the structure of EOD chart does give hope for the up move, please be cautious when Nifty Future breaks trend line on 30 min chart at 5080 - as the fall could be pretty sharp. In any case, please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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