NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
After a weak opening on Friday, Nifty Future went down to make the day's low of 4819. The reason for getting the support is apparent on the 30 min chart, as it took support on the median level of Andrew's Pitchfork and also exactly on the circumference of the circle shown on the EOD Chart. It ended the day as doji - suggesting indecision.
In view of the exact nature of this support, new short position to be created only below last weeks' low of 4819 or safer still below 4800. However, considering my optimism for a bonce from 4680 level, I would recommend to avoid the last 100 points on the down side and instead be ready to buy at the first sign of Nifty Future taking support at the levels indicated by me - although with a strict stop loss of above 50 points. In case you are trading futures the buying at lower should be considered ideally in Oct 2011 series.
In case of a firm opening, one can consider going long above 4900 with stop loss of 4850. On the higher side, 4950 - 5000 and 5040 will provide resistance. Please note that higher the level, stronger the resistance.
There has been much unwinding of position in Put options for the current month, except 4600 strike price which has seen good amount (26.96 Lacs) of build up in open interest. This can be taken as a further indication of support emerging at 4600 levels for this month. On the call option side, there has been some build up in 4800 and 5000 strike price. I would not advise any trading in options for this month as there are just four trading sessions left for this settlement.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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