NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
On the back of up move in World markets, Nifty Future opened with a gap. Contrary to my expectation and after some initial hesitation, it maintained sustained up move through out the day. It made a low of 4905 and high of 4889 and finally closed firm at 4978.
As usual, I remain sceptical of the 'V' shaped recovery and hence advise caution at higher levels. Considering the continuation of up move today in the US and European markets, we too should continue the up move!
On the higher side, we have 5015 which could offer strong resistance as shown on the 30 min chart. Above that 5050 will offer resistance. In the event 5015 does provide resistance as expected, one can consider going short with stop loss of 5050. On the down side, 4950 - 4920 and 4870 will provide support.
In the event of a weak opening (though unlikely) one can consider going short below 4950 with stop loss of 5015. On the lower side, 4920 and 4870 will provide support. Weakness will accelerate below 4870.
While everything looks good, I would just like to draw your attention to the Index Options data where call options of the 4800 & 4900 have seen reduction in the open interest where as there is total increase in open interest of 52.43 lacs in the Put Options. Secondly, today Reliance was leading the up move. In this case too, you will find that while open interest in call option has reduced, there has been total increase of 3.47 lacs open interest in put options. I don't know why would some one sell call options and buy puts with just 2 days to FNO settlement and that too when market is rising. Just think about it get the right answer before the market opens tomorrow and trade accordingly.
In any case please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
No comments:
Post a Comment