Sunday, January 15, 2012

TURNING POINTS FOR 16.01.2012


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading, Nifty Future made a high of 4918 and in the second session made the day's low of 4844 and closed the day at 4878. The day's candle is a doji - suggesting indecision. It is noteworthy that Nifty Future could not cross the resistance of 4925 referred by me for the whole of last week.
For tomorrow, I do not advise any fresh long position as markets could come down with the beginning of negative news in the form of downgrading the credit rating of France and other EU nations by S&P. Secondly, Bank Nifty Future too seems to have exhausted its run and may find it difficult to cross the trend line resistance at 9150. In the unlikely event of Nifty Future crossing 4925, next resistance is at 4960 and 5050.
One can consider going short with stop loss of 4925. On the down side, it will find support at 4800 - 4755 and 4720. Once Nifty Future breaks 4800 on the down side, it would have broken the trend line and hence I would not advise buying on decline unless we see Nifty Future taking support at lower levels. As mentioned in the Weekly post, one can consider buying small quantity of 4700/4800 puts - though time to expiry is just 8 trading sessions. It would be better to sell the stocks on delivery basis, so that the same can be bought back on declines.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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