Thursday, February 9, 2012

TURNING POINTS FOR 10.02.2012


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading Nifty future opened little hesitant and remained volatile throughout the day and in last one hour shot up to the day's high of 5452 and closed at 5437. Despite the bullishness (due to short covering !!) in the hour, Nifty Future did not cross the median line of the Andrew's Pitchfork on the 30 min chart.
With Greek deal done, we have every reason for the party to go full blast - now that it has also crossed previous quarter high at 5403. However, the worrying factor is the one way rise and the premium of Rs. 25 seems to be unsustainable and only indicates short covering. As such, having crossed 5400, even 5725 is possible. But without any correction - I don't think it is feasible. Moreover, the results being announced too are mixed with bias towards major ones being negative.
While correction seems to be a bad word now, one can either participate with strict stop loss or wait for Nifty Future to go below 5390 and go short with stop loss of 5420. On the down side, it will have support at 5325. Below 5325, it will be out of Andrew's Pitchfork and the fall can accelerate. Tomorrow being Friday should give us a correction else we will have a strong weekly close (straight 6 weeks) once again and then next week we will be within striking distance from the major resistance of 5725. Well it sounds good, but looks quite impractical. If you share this view, do take good care of your long positions tomorrow.
In any case, please do not trade without STOP LOSS.
With best Wishes,
Ketan Asher.

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