NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future opened firm but could not sustain higher levels despite two attempts. During the day, it made high of 5140 and low of 5066. It ended the day @ 5074. While close near the day's low is a matter of concern, we have to give allowance that a correction after a strong up move is quite expected. On the attached 30 min chart you will find that Trend line (in Red) drawn yesterday did provide the resistance.
In today's trading, Nifty Future opened firm but could not sustain higher levels despite two attempts. During the day, it made high of 5140 and low of 5066. It ended the day @ 5074. While close near the day's low is a matter of concern, we have to give allowance that a correction after a strong up move is quite expected. On the attached 30 min chart you will find that Trend line (in Red) drawn yesterday did provide the resistance.
For tomorrow, we are poised to break the trend line (in Blue) below 5060, which may take Nifty Future further down. One can consider going short below 5060 with stop loss of 5100. On the down side, it will find support at 5000 and 4950. I would continue to suggest that, at higher levels fresh long positions are best avoided.
Tomorrow - the last trading day for the week is once again important from the closing point of view. I would consider close below 5000 will once again increase the down side risk for the next week. After all, we are in the 10th week of the sideways movement in the range of 4700-5200.
As regards the Index Option data, there has been considerable increase (28.08 Lacs)in the Open Interest of Strike Price ranging from 5100 to 5300. On the other hand there has been increase in open interest (18.70 Lacs) for strike price ranging from 5100 - 4700. Considering the weak close and heavy build up in total open interest in Puts, possibility of further down side remains open.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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