NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a not so strong opening, Nifty Future broke yesterday's low by just a few points to make the day's low of 4902. After some sideways movement, Nifty Future continued sustained up move for the rest of the day to make the day's high of 5036. This was mainly helped by Infy, Auto and Bank stocks. The FNO settlement day finallly closed at 5019. On the 30 min chart, I have marked a channel, which identifies the reason for the day's top. Secondly, 4900 is now an all too important a level for further down move.
Tomorrow is an important day in more ways than one as it is not only last day of the week, but more importantly last day of the month as well as the quarter. Will the up move continue tomorrow? Well it may, if it manages to move above 5040, just to find another hurdle @ 5080 (shown as a trend line in red) and the gap left on 22nd Sept @ 5119. I doubt if the up move will continue one way with so many hurdles and hence it is best avoided. If at all it manages to go up to fill the gap at 5120, it would be good a level to sell with stop loss of 5170.
Short position may be taken below 4990 with stop loss of 5040. On the down side it will find support at 4965 and 4920. Break of 4900 will bring the price out of the channel, and will accelerate the fall.
As regards the Index Option build up - 5200 Call has seen increase of 15.64 lakhs in open interest, on the put side there has been total increase of 33.47 lakhs in the strike price of 4700 to 5000. Thus once again puts continue to outnumber the calls.
While I will deal with weekly & montly chart during the weekend, it would suffice for now to mention that "All is not well" until and unless Nifty Futue breaks 5174 on the up side and it would be too far fetched to believe that we will be able to cross this level tomorrow itself.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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