NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In volatile trade, FNO settlement took place today on a bearish note. Intrestingly, Nifty Future has finally come out of the Andrew's Pitchfork on the 30 min chart. On the same chart you will also find that intra day, Nifty Future retraced without being able to move inside it. Secondly, on the EOD chart you will find that Nifty Future has moved below the trend line - suggesting weakness.
During the day Nifty Future made a high of 5542 and low of 5465. Though it closed today at 5488 for tomorrow's reference point we have to consider Mar series which closed at 5537.
Tomorrow's trading has to be seen in context of it being the last trading day of the 8th week of up move. Will Nifty Future be able to close near the high of this week - for the straight 8th week? To me this looks unlikely - more so because Nifty Future has not even crossed the previous weeks' high yet and hence lower high is already in place. It is likely that Nifty Future can go up to 5585 and find resistance. Short position may be considered at this level with stop loss of 5625. On the down side, it will find support at 5510 - 5465 and 5420.
As regards the Index options data, there has been considerable increase on the put side for Mar series - once again suggesting weakness ahead. I would not advise fresh long position at higher levels as close around 5550 will indicate weakness for the next week.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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