NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a weak opening, Nifty Future continued its downward march and got ready to break previous low of 4718 - possibly tomorrow. Today is the straight 8th day of downward move. During the day, Nifty Future made high of 4879 and low 4769. It closed the day at 4783 near the low of the day.
While everything looks gloomy and once we go below 4718, we may see all hell break loose and rightly so as Nifty Future will break quarterly low. Considering that World markets are trading lower by over 2% at the time of writing this post - in all probability we should open with a downside gap. Moreover, issues like margin calls and payment problems will only add to the chaos. In the event of Nifty Future opening with a downside gap, I would not advise fresh sell. Please remeber that we have already fallen today by about 2% and have been falling for the past few days.
While I do expect Nifty Future to find support around 4600, it would not be prudent on my part to suggest buying as it would be like catching a falling knife. However, I would suggest that those who have sold for delivery at higher levels will do well to buy those shares back at lower levels. Those holding puts too will do well to encash the same and also short position should be covered at this level. Although close below makes the room to go down to test my much awaited level of 4400, I do not think that it would be such a fast fall - particularly with FNO settlement around the corner.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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