NIFTY FUTURE WEEKLY
Third straight week with higher bottom and higher top. On Friday, Nifty Future achieved the target of 5050 which I had indicated sometime back - as a rare possibility. During the week Nifty future saw a range of 230 points (High 5065 & Low 4835) and closed the week at 5048 - just below the trend line shown on the attached chart. This rally was led by Reliance and Bank Stocks.
With Reliance results being weak, we can expect it to fall in the opening session on Monday and arrest this up move. More importantly, we need to wait for Tuesday, when RBI declares its Credit policy. While lot of hopes are already built into the Bank Nifty, any negative indication can be a big dampener and will puncture the momentum built in to the market - with due help from FIIs.
On the down side, 4825-4850 becomes an important support level. In case this level is breached, we are down to 4700.
All this heightened activity coming around the FNO settlement on Wednesday provides good opportunity for those trading in puts & calls and are on the right side of the market. I am sure those relying on TP GRID and previous quarter levels will get an unbiased view of the market.
Have a nice weekend!
Ketan Asher.
PS: For some more interesting facts, please read the monthly post too.
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