Tuesday, January 3, 2012

TURNING POINTS FOR 04.01.2012


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
As expected, Nifty Future opened with gap and continued up move throughout the day. During the day, Nifty Future made high of 4794 and low of 4680. It closed the day strong at 4783.
With World markets too trading strong, we can expect strong opening tomorrow. However, we are now close to key resistance level at 4835 and it needs to be seen whether we cross this level straight away or see a correction to fill the gap (@ 4655) left in the opening session today.
Considering the substantial (35.14 Lacs) increase in open interest for puts with strike price of 4600 to 4800, I would tend to believe that we may see a correction to lower levels before we continue the up move to fill the gap at 4921 (spot Nifty).
In the event Nifty Future shows weakness around 4835, one can consider going short with stop loss of 4865. On the down side, it will find support at 4720 - 4685 and 4645. Fresh buying may be considered at lower levels at 4645. Alternately, one can consider buying 4600 puts when Nifty Future opens strong tomorrow.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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