NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future opened weak and gave a sharp correction - after 8 days of sustained up move. During the day, Nifty Future made a high of 5190 and low of 5101. It closed the day at 5112 - near the low of the day and hence weak. At the time of writing, US & European markets too are weak.
For tomorrow, we can expect a weak opening below 5100 - which will take Nifty Future out of the Andrew's Pitchfork for the first time after many days. On the downside, it will find support at 5060 and strong support at 4975. Furthermore, tomorrow's price action should be seen in context of it being the last day of the monthly candle and if the current up move is to sustain close too should be above 5100, as the upper shadow on the monthly candle will indicate the strength in the up move.
In case Nifty Future moves down to the low of 4975 it will find support of the trend line (shown on the EOD chart) as well as 0.382 correction level. At this level, one can consider buying Nifty Future for a bounce (or at least square up short positions - depending on your risk profile) with stop loss of 4950. On the way up, it will find resistance at 5100. As such, I would suggest to keep the bias negative while Nifty Future trades below 5100 and positive above it, as it could take Nifty Future up to 5165.
If you recall my weekly post, I had mentioned that we are in for an important week - well the beginning is just right - lets see how things unfold as we progress. In any case, don't forget to put the stop losses in place.
With Best Wishes,
Ketan Asher.
PS: Those using the quarterly levels (given elsewhere on this blog) should know that during the previous quarter Nifty Future made a high of 5403 and hence it is obvious that "All is well" happens only when Nifty Future crosses above 5403 - which as of today remains a bit far.
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