TURNING POINTS FOR 08.11.2011

NIFTY FUTURE 30 MIN / NIFTY FUTURE 30 MIN
NIFTY FUTURE:
In Friday's trading, Nifty Future opened with an upside gap and made the day's high at 5354 but gave up all the gains in the second half of the day to fill the opening gap when it made the day's low at 5283. It closed the day marginally better at 5317.
For tomorrow or rather the remaining 3 trading days of the week, Friday's low of 5283 becomes an important level (its also very close to the mid point of the month @ 5288). Fresh short position may be taken below 5280 with stop loss of 5325. On the down side, it will have support at 5250 and 5200. On the attached EOD chart, you will find that Nifty Future will break the trend line at 5250 and hence if Nifty Future trades below 5250 it may have a sharp fall and it is possible that 5200 does not provide the much talked about support. As shown on the 30 min chart, 5150 and 5050 are the next support levels. In nutshell, for tomorrow 5250 becomes an all to important level.
I am not recommeding fresh buy for Nifty Future, as 5350 and 5400 may provide resistance on the upside.
As regards the Index Option data, there has been increase of about 18 lacs in open interest for Strike Price ranging from 5400-5600. As against this, on the put side, the increase in open interest is 29.34 Lacs for the strike price ranging from 4900 to 5400. Looking at this data, I feel the bias remian in favour of the downside. As mentioned last week, buying 5000 put at about 20-25 will be advantagesous in the event of a sharp down side as discussed above.
Please do not trade without STOP LOSS, as downside could be sharp once Nifty Future falls below 5250.
With Best Wishes,
Ketan Asher.