NIFTY FUTURE WEEKLY / NIFTY FUTURE EOD
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A weak open on Monday and further downside for Nifty Future is a foregone conclusion with our markets closing near the low of the week and furhter confirmed by weakness in US markets.
On the attached EOD chart, I have drawn Andrew's Pitchfork which indicates Median Line support at 4675 and Gap at 4656.
On the attached weekly chart, Andrew's Pitchfork indicates Medain Line support at 4700. Thus reading on both the charts does indicate that their exists good support between 4650 and 4700.
From time and price perspective, it is important to note on the Weekly chart that after bottoming out at 4538 (on 20th Dec'11), Nifty Future went up to 5700 in 8 weeks, whereas the current downside from the high of 5700 level has taken double the time (next week is the 16th week from high of 5700) - suggesting lower velocity during the fall and thus providing good reason for possible support in the 4650-4700 range.
The levels indicated above may be reached during the course of the next week and one can consider buying Nifty Future with strict stop loss of 4600.
Have a nice weekend!
Ketan Asher.
