NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In a surpirse move, Nifty Future opened weak on the back of Global cues and went down to make the day's low of 5033. In the 2nd half, it mustered enough strength to make the day's high of 5111 and closed the day at 5103. As Nifty Future closed near the top of the day, we have a long lower shadow which indicates bullishness. It seems, Nifty Future just took a breather to fill the gap left on the previous day and secondly it did not break this weeks' low of 5013 makes me optimistic that we may see the Nifty Future filling the Gap at 5300 - may be to celebrate the Diwali festival. On the EOD chart, I have highlighted the past 7 days movement which appears as if the stage is set for Nifty Future breaking the 5200 barrier.
For tomorrow, one can consider going long with stop loss of 5065. On the higher side, we have resistance at 5165-5185 region and then short covering may also come to the aid of bulls. It may be just a coinidence that we are scheduled for FNO settlement next tuesday (and not Thursday as usual due to Diwali). This leaves only 3 more trading sessions to FNO settlement. I would add that it may not be prudent to remain short once Nifty Future trades above 5185.
Short position may be considered below 5065 with stop loss of 5120. On the down side, it will find support at 5000 and 4975.
My optimism also stems from the Index Option data, which shows that on the call side, there is an increase in open interest of 43.51 Lacs in the strike price ranging from 5000 to 5200. On the put side, there is no significant increase except that of 4500 strike price which has increase of 13.76 Lacs.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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