NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
After a sharp up move yesterday, Nifty Future made a sharp down move, taking Nifty Future below yesterday's low and thereby creating a panic like situation.
I have updated the blog today with the hope that with the help of the attached charts we can be prepared for tomorrow's trading.
The close does indicate that we may see a weak opening tomorrow, even leading to a gap down open in case the World markets extend weakness. However the brighter side is that we are now close to many supports in the area of 5150 and 5180. Even the Andrew's Pitchfork drawn on the attached chart shows median line support around the same level.
Considering that we had a strong brake out on the weekly chart after range bound trading for 64 weeks, I doubt if this weakness will precipitate into a major downside.
More importantly,tomorrow is a Friday and a time for weekly close. In my view, once the opening session weakness settles down around the levels indicated above, one can consider going long on Nifty Future with stop loss of 5140 or better still buy 5300 call for the current series or the next month - if you are ready to pay little more. Once Nifty Future trades above 5270 level, one can consider that my optimism has some merit.
With Best Wishes,
Ketan Asher.
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