NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In yesterday's trading Nifty Future continued with the formation of lower lower bottom for the 7th day in a row. In the second half of the session, once Nifty Future broke 5000 level, it saw big selling and took Nifty Future down to the day's low of 4915. The close being near the low of the day should be considered weak.
We may see a weak opening today, but expect to see a good bounce, as Nifty Future has covered the full distance (4726 to 5193 = 467 points) on the downside too when calculated from 5403 (5403-467=4936). The time taken to cover this distance on both sides is also similar - 15 days for up move and 13 days for the down move.
Considering that the Word markets too are weak, we must factor the possibility of filling the gap at 4844. In case of a weak opening, one can consider going long once this gap is filled. Alternatively, if yesterday's low is not broken, one can consider going long with stop loss of 4900. On the way up, it will face resistance at 5050 - 5082 and 5130.
If the week has to close near 4900 levels, we have a big candle which will be too bearish for the next week. I don't expect this to happen and considering the strong build up on the call side - just wonder if we are in for a surprise rally due to FNO settlement. Just a wishful thinking at best.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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