NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
Last Friday, saw a good bounce with a gap up opening, but saw selling pressure at higher levels. While it managed to fill the gap left on 3rd Oct., it left an unfilled gap for the day. During the day it made a high of 4939 in the early session but could not sustain at higher levels and in the second session made a low of 4873 and closed the day at 4899 - closer to the day's low but near to the high of the weeks' candle and thus giving confusing signals.
For tomorrow, one can consider going short below 4870 with stop loss of 4900. On the down side, it will find support at 4830 and 4800. Break of 4800 will once again lead to panic like situation with Nifty Future having to decide when to break 4700 levels.
For Nifty Future to go up, it has to once again cross the resistance level of 4920. In that event, one can consider going long above 4920 with stop loss of 4870. On the higher side, it has to cross 4980, which will then make it possible to make an attempt to fill the gap left on 22nd Sept. at 5100 levels. While going up to 4980 may be possible, but crossing this level on the first attempt looks a bit difficult.
As mentioned in the weekly post, selling Calls of higher strike price (particularly of Strike Price of 5000+) at resistance levels, looks a better option then to buy Puts as time value will favour the call writer.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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