NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
NIFTY FUTURE:
On the back of weak Asian markets, Nifty Future too opened weak and made the day's low at 4835 in the early session. On the 30 min chart you will observe that Nifty Future took support on the mid point of the important range. Subsequently, on the back of announcement of lower inflation figures, Nifty Future moved up to make the day's high of 4900 and closed the day at 4891 - near the high of the day.
Considering a strong close, I am tempted to believe that the up move will continue tomorrow - but only if it manages to cross 4925. In the unlikely event of Nifty Future crossing 4925 it will find next resistance at 4960. In case Nifty Future returns from this level, I would consider that it has done double top - which would reconfirm my belief that we are likely to go down. I would wait for one more day to reconsider my view and therefore not advise fresh long positions even for tomorrow.
One can consider going short when Nifty Future moves below 4865 with 4925 as stop loss. On the down side, it will find support at 4835 and 4800. Break of 4800 (trend line on EOD chart) may lead to faster down move.
Considerable increase in open interest in Nifty and many key stocks also indicates the possibility that we are about to start the down move below 4800. As a contrarian trade, It would be worth considering buying 4700/4800 puts which provide good risk reward opportunity in case Nifty Future moves below 4800 in the remaining 7 days to the FNO settlement.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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