Monday, November 28, 2011

TURRNING POINTS FOR 29.11.2011


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :

On the back of a strong up move in Asian markets, Nifty Future opened strong in complete contrast to a weak close on last Friday. After a strong opening, Nifty Future maintained a slow but steady rise throughout the day to make the day's high of 4875 and low of 4750. It closed firm at 4870 - near the high of the day. Interesting point to note is that it did not break previous weeks' high of 4879 by just 4 points.

At the time of writing this post US / Europe markets are up by over 3% hence we can expect a strong opening session tomorrow and Nifty Future heading for the next important resistance at 4930 - that is if it clears previous week's high of 4879.

I would not advise long positions for tomorrow. Instead, one can consider selling calls of 5000 Strike Price or buy 4700/4800 puts when market is near the resistance level of 4930.

On the down side, Nifty Future will find support at 4850 and 4780. Break below 4780 may indicate further weakness.

As regards Index Option data, on the Call side - there has been increase in open interest of 14.49 Lacs for the strike price ranging from 4900 to 5200. As against this, on the put side the open interest has increased significantly to 31.87 for the strike price ranging from 4800 to 4500. This too suggests that we may see some pull back tomorrow, before Nifty Future can continue the up move - that is if it does not break 4780.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

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