NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
Last week, Nifty Future saw the best close in 10 weeks of being range bound. This brings us close to the higher level of the trading range of 4700 -5200 during the 10 weeks. As everything looks good around us, there is nothing to suggest that we may not clear the hurdle.
Though we have always referred to the trading range as 5200 on the upper side, I would like to caution the readers that 5223 was an open=High on 10th August and hence I would advise to keep the level of 5225 as the reference point above which filling the gap region of 5234 and 5325 becomes a distinct possibility.
Considering the close on Friday, we can expect a strong opening tomorrow. As a rule I prefer to avoid buying when there is a gap up opening. As such, Iooking at the negative divergence on the 30 min chart, I am not too enthused to go for buying in this critical zone. Existing long positions may be trailed with stop loss of 5080.
On the higher side, 5185 and 5225 will provide resistance. One can consider going short at 5225 with stop loss of 5260. On the down side, we have support at 5080 and 5000.
In the unlikely event of a weak opening, one can consider going short below 5080 with stop loss of 5110. On the down side, it will have support at 5000 and strong support at 4920.
As regards the Index Options data, there has been call buying up to 5400 Strike Price, but the same has not been very aggressive. As against this, the Puts have seen considerable increase of open interest in the strike price ranging from 5200 to 4800. This too suggest that down side may not yet be over.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher,
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