Saturday, November 5, 2011

TURNING POINTS FOR WEEKENDED 04.11.2011




NIFTY FUTURE WEEKLY

Last week, Nifty Future saw a range of 157 points (High 5378 & Low 5221) and closed at 5317 almost at the mid point of the week. While at this weekend, the set up on the weekly chart still remains positive, the point we must note is that Nifty Future made a lower top compared to the previous week.

As shown on the chart, Nifty Future remains within a channel and having a breakout at 5450. On the optimistic side, even if Nifty Future manages to cross the channel, we have many resistance levels on the higher side. Hence one neeeds to be very cautious with long positions at the higher levels.

On the down side, 5200 level may offer good support for a bounce atleast.

I would like to highlight that in veiw of the intervening holidays, we have FNO settlement just 12 trading days away. It is important for the option buyer to keep in mind this fact as time value of the option will erode very fast. As against this, the option seller will stand to gain on account of the same.

Have a nice weekend!

Ketan Asher.

PS: In view of market holiday on Monday, regular post for Tuesday will be uploaded by late evening on Monday.

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