Friday, September 16, 2011

TURNING POINTS FOR WEEKENDED 16.09.2011



NIFTY FUTURE WEEKLY.

This week ended on a positive note, however with just one major negative - it made a lower top / lower bottom. The week's range was 254 points (High 5155 & Low 4901). It closed near the top of the week - which prima facie does not suggest any weakness.


Another major hurdle is the resistance at 5200 level - which I continue to believe will not be crossed so easily. While Nifty Future did close near the high of the day, the picture does not look so rosy, when one looks at the chart of HLL, Reliance, Infy etc. who led the rally for the past few days.


This weeks' rally has been supported by consitent up move in US/European markets - though comparison is not possible as the problems faced by them are entirely different than those faced by us. Moreover, they had fallen much harder and this could be just a dead cat bounce for them.

Seccondly, there has been a huge build up in the Put Options for the current series. This may help providing support to the market, if it falls below 4900.

Have a nice weeekend!

Ketan Asher.

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