NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
And what a fall it was!. In a complete twist to the mood till yesterday, today's fall made it appear that there were no bulls left anymore. It is this type of fall which I had been anticipating for the past few days, which will prepare the ground for market to gather momentum to take it above 5200. While I will not bother you with the statistics, I would just add that after a gap down opening, today's fall has covered previous 7 days price action. On the 30 min chart you can see how well day's low has taken support at the Andrew's Pitchfork median level.
For tomorrow, I would not advise going short even if Nifty Future goes below today's low of 4898. I expect Nifty Future to find support at 4850 and show a bounce, more particularly as tomorrow is the last working day for the weekly chart (as usual, Friday effect). In the event, Nifty Future takes support around 4850 level on 30 min chart, one can consider going long with stop loss of 4800. On the higher side, it will find resistance at 4950. Upon crossing this level, Nifty Future may go up to 5040-5050. Much would depend, whether Nifty Future does not breaks today's low or takes support around 4850 before a bounce is seen.
As for investment buying, though the levels are tempting, I would suggest wait till next week, as by then, the market would find its bottom.
There has been much unwinding of positions in Put Options and some buying of 5000-5100 strike price. However, considering a short time to FNO settlement, I would not recommend any buying of calls for this series. As regards, buying calls for the next series, waiting for the next week will make the time value more affordable and realistic.
In these choppy times, please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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