NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
On the back of fall in US / European markets, we too opened with a downside gap and made the day's low of 5243 in the opening session and bounced back thereafter to make the day's high of 5335 which was yesterday's high too. In the second session Nifty Future pulled back to close the day at 5280. Interestingly, Nifty Spot filled the gap but Nifty Future has not yet filled the gap. On the EOD chart, you will find that Trend Line leaves the scope for Nifty Future to fill the gap up to 5192 and provide the support.
Once again if we look over our shoulders to the US & European markets, they are trading positive by over 1% at the time of writing this post. It is likely that we too may open firm but considering the market's reluctance too go up beyond 5335 today, caution is advised at higher levels as 5370 (median line of the Andrew's Pitchfork and months' mid point too) may provide resistance tomorrow. I would only suggest that, view should be positive as long as Nifty Future remains above 5310 and should turn negative below it.
Short position may be taken at 5370 level with recent high of 5420 as stop loss. Once below today's low of 5243, possibility of filling up the gap remians open.
Long position may be taken around 5200 level with stop loss of 5165.
As regards the Index Options data, there has been increase in open interest of 16.12 lacs in the Calls for the strike price ranging from 5300 to 5600. On the put side, increase in open interest for strike price of 4700 & 4800 is 15.47 lacs and 19.98 lacs for the strike price ranging from 5000 to 5300. Consideing the heavy increase , I would read it, that we should see the filling up of the downside gap, before we see the high of 5403 being crossed.
In these volatile times, please do not trade without STOP LOSS and last but not the least please see the TP GRID and revise the levels as market makes new tops and bottoms and I am sure it will help you to be on the ruight side of the market.
With Best Wishes,
Ketan Asher.
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