NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In yesterday's trading, once again we had the same pattern which we have seen for the past few days - sideways movement through the day and new high in the last hour, may be because of short cutting by day traders. Nifty Future made a high of 5454 and low of 5395. It closed the day at 5440.
While Nifty Future did cross 5450 by a few points, but it is also important that it remains so for a while, for us to believe that there is strength to continue higher. On the 30 min chart, Andrew's Pitchfork continues to provide the right guidance - as it has not yet broken the level on the down side, and is also not able to muster strength to cross the median line. As such, with passage of time, the breakdown level is inching up.
For today, I would continue to advise caution and if Nifty Future does not break yesterday's high, will consider Nifty Future to be weak. However, it would be prudent to go short below 5395 with stop loss of 5420. At this level, Nifty Future will also be out of Andrew's Pitchfork and may accelerate the fall. On the down side, it will find support at 5365 and 5320. I would also like to highlight that on the EOD chart, below 5365 Nifty Future will break a trend line, which can accelerate the weakness and hence one need not rush to create long position.
Once again we saw reduction in open interest for Nifty Future - suggesting that smart money is reducing long positions in anticipation of a correction.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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