NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading, after initial hesitation, Nifty Future broke the level of 4920 and maintained a steady up move for the rest of the day to make the day's high of 5004 and closed the day at 4994. On the EOD chart the close has been just at the Median line of the Andrew's Pitchfork, suggesting that move above today's high should take Nifty Future to 5110 to fill the gap.
While everything looks set for a strong opening (thanks to the up move in US/European markets, I would like to draw your attention to the rising wedge drawn on the 30 min chart. In the unlikely event of a weak opening any fall below 4950 will accelerate the fall and hence all long positions may be held with a stop loss of 4950.
We are now nearing the higher end of the trading range of 5200 - 4700 and hence caution is advised for long positions. For tomorrow, I would not advise long positions at higher levels. Short positions may be taken below 4950 with stop loss of 5000. On the down side, it will have support at 4910 and 4870.
Option data is quite interesting as there has been considerable reduction of Open Interest in 4900 & 5200 Strike Price. As regards the Puts, there has been increase in open interest of 27.18 lacs in 4900 & 5000 strike price. This data does suggest that we could be in for some surprise in a day or two, otherwise why would someone buy such a huge quantity of Puts? If you feel the smart money is buying the Puts, do join them with a small quantity for you too!
While enjoy the ride till it lasts, but don't forget to put your STOP LOSS orders.
With Best Wishes,
Ketan Asher.
No comments:
Post a Comment