NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a weak opening, Nifty Future managed to go high (4888) but remained just 1 point short of yesterday's high. This triggered a fall which took Nifty Future down to the day's low of 4818. Today's low remained much above yesterday's low and in the second session, Nifty Future made another attempt to go up and closed the day at 4652. The day's candle is a doji - indicating indecision. This higher close was due to the sharp up move in the last few minutes of trading which indicates good opening for tomorrow - of course subject to no major adverse reaction in the US/European markets.
Considering that Nifty Future has been range bound for the past two days, with upward bias, I would tend to believe that Nifty Future can continue the up move tomorrow. I would suggest buying Nifty Future above 4891 with stop loss of 4865. While recommending a buy tomorrow, i would like to add a caveat that crossing of 4925 remains important and hence long position should be considered with strict stop loss. In case Nifty Future manages to move above 4925, it will find resistance at 4960 - 5000 and finally at 5050.
Short position may be considered in case Nifty Future shows weakness at the above resistance levels with next level indicated above as stop loss.
Weakness will accelerate only below 4800.
The way Infosys was hammered (down 8%) after a weak guidance, should be seen as precursor of things ahead (Infosys has good support at 2575). It would be better to use any up side to sell stocks on delivery basis. Surprisingly, Bank Nifty Future continues to go up even though there has been no indication yet of CRR cut. In nut shell, while enjoy whatever up side is left, please make sure that you don't get stuck at higher levels.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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