NIFTY FUTURE 30 MIN / NIFTY FUTURE 30 MIN
NIFTY FUTURE:
Yesterday, Nifty Future opened firm and continued its up move but corrected sharply without breaking previuous day's high to make the low for the day at 5001. Thereafter it saw a sharp upmove, to make the day's high of 5119 and closed firm at 5113. It finally filled one of the gaps. On the 30 min chart, I have drawn a trend line which has provided resistance at yesterday's high and may continue for today unless it is broken on the upside in the early session.
For today, long positions are best avoided as there is a good possibility of a correction after having filled the gap yesterday. Existin long positions may be kept with a stop loss of 5070. Fresh short position may be taken below 5070 with stop loss of 5120. On the down side, it will find support at 5000 and 4920.
In the event Nifty Future continues the up move, next resistance will be at 5165 and 5225.
Once again, Index Option data provides an interesting information wherein there is an increase of 72.17 lacs in Puts for the strike price ranging from 4600 to 5100. As against this, there has been increase of just 12.88 lacs Calls for the strike price of 5300 & 5400. Interestingly, there has been considerable reduction (19.52 Lacs) in open interest of Calls for the strike price ranging from 4700 to 5200. To me the huge built up in Puts does suggest that market should go down - thats the only time the guys who sold the calls and bought the puts yesterday will make money.
So, if you find merit in this argument, please trade accordingly - but in any case don't trade without using the STOP LOSS.
With Best Wishes,
Ketan Asher.
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