NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
RBI cutting the CRR led to sharp up move which took Nifty Future to the high of 5150 and also close to the previous top and the higher range of the Andrew's Pitchfork drawn on the EOD chart. This brings happy ending to one of the worries of the market. In today's trading, after making a high of 5150 - close to the previous month's high of 5135. Nifty Future closed at 5120 - leaving a small upper shadow.
Today's higher level is near the resistance level and hence best to avoid buying at higher levels. Instead, one can wait for a healthy correction before considering fresh buying.. For tomorrow, short position may be considered with stop loss at 5165. On the down side, Nifty Future will have support at 5100 - 5035. As such, Nifty Future will come out of the Andrew's Pitchfork, once it is below 5000 - after trading inside it for many days.
The mood could not have been better than what it is today. However, it would be better to wait for the market to correct before it manages to cross 5175 and thereafter 5300. It is only above 5300 (on weekly chart) that Nifty Future will be finally out of the channel and of course the time for celebration. Till then, be quick footed to change your view and hold the long position with stop loss of 5100. I am glad that one more time it has been proved that statistical method (like TP Grid) is far superior (and unbiased) to view based one (including mine).
Caution is advised at higher levels and in any case don't trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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