NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, Nifty Future opened firm and made the day's high of 5131 but once again saw selling pressure at higher levels. It remained weak in the second session and made the day's low of 5038 and closed the day at 5054. The positive on an otherwise bearish day was that it did not break the previuos day's low. Nifty Future remained bearish mainly due to weekend consideration particularly in light of important meetings in Europe. On the EOD chart you will find that Nifty Future remains within a small range shown in yellow.
After our markets closed, Europe and US markets have closed firm (up by about 2%). This indicates likelyhood of a firm opening (Gap up?) tomorrow for us. One can consider going long above 5065 with stop loss of 500o. On higher side, it will find resistance at 5156-5185 region. As metioned previously, please do not remain short above 5185. Further up, we have resistance at 5225 and 5325. Caution is advised at higher levels in view of RBI meeting on Tuesday alongwith FNO settlement scheduled for the same day. Booking profits on long position may be a prudent thing to do.
Short position may be considered only below 5000 which appears unlikely for tomorrow.
As regards Index Options data, there has been increase in open interest of over 22 Lacs in strike price ranging from 5100 - 5300 for Oct & Nov series. On the put side, the addition for current month series is subduded at just about 5 Lacs for strike price of 4800 & 5000 and for corresponding Nov series is about 7 Lacs. To me the considerable increase in Call side suggests the bias remains positive.
In view of clubbing of major events, volatility can be expected to be high and hence please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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