NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
On the back of strong close in European markets despite rating downgrade of 9 European countries including France, Nifty Future opened with a gap (day's low of 4912) and went up steadily during the day to a high of 4988 and closed strong at 4977. Thus contrary to my expectation, Nifty Future continued to go up.
On the attached EOD chart, I have drawn a trend line which shows resistance at around 5020 and on the Weekly chart has a strong trend line resistance at 5050. In light of these two immediate levels of resistance, I would not like to change my view for just a few more points of up move. This coupled with huge (41 Lacs) increase in open interest for puts with strike price of 4900 & 5000 and similar situation in many stocks, I would remain cautious on the long side as correction may set in any time and give an unpleasant surprise.
In my view selling delivery based stocks at higher levels is a better idea. Tomorrow, one can consider going short below 4970 with stop loss of 5000. On the down side, it will find support at 4920. If Nifty Future moves below 4900, the fall can accelerate as it would be out of the Andrew's Pitchfork which provided support yesterday.
Though my view may be out of sync with the markets, I would advise caution at higher levels and fresh long positions are best avoided or atleast held with a tight stop loss.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
PS: Puts with strike price of 4800/4900 look a tempting buy. Please do consider them even as a contrarian buy as we have 6 more days to FNO settlement and Newton's Law always comes into play, when market falls.
No comments:
Post a Comment