TURNING POINTS FOR 12.03.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE:

In today's trade Nifty Future opened firm and made a low of 5102 and then consistently made higher top and higher bottom on 30 min chart and after some choppiness, made high of 5161 in last 30 min of trade. This suggests that Nifty Future went up largely due to short covering and hence calls for cautious approach tomorrow.

Considering today's close at higher end of the day, Nifty Future should have a strong opening tomorrow. However, as we will be faced with major resistance areas for Nifty Future viz. 5175 and 5225, i would not recommend fresh long positions at higher levels. Existing long positions should be trailed with stop loss of 5125.

For this rally to gain strength, Reliance has to cross 1030 and 1055.

Put Call Ratio of Index Options has significantly dropped to 0.99 as against 1.39 yesterday.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

TURNING POINTS FOR 11.03.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE:

In today's trading Nifty Future opened at yesterday's level and went up to make a high of 5140 and then gave up all the gains by middle of the day to go near the day's low of 5095 and closed the day at 5118. It had one more narrow range day. Interesting feature of today's trading was that it did not go below yesterday's low and continued to take support on the trend line shown in the EOD chart. Best part of today's trading is that Reliance has closed above 1000 with above average volumes. Let us hope it continues to provide leadership to the market and takes it out of the narrow range syndrome.

For tomorrow, one should go short only if Nifty Future trades below 5090 with a stop loss of 5135. On down side it will find support at 5055 and 5000.

One should consider going long above 5145 with stop loss of 5100. On higher side it will find resistance at 5170 and 5225. It is not advisable to remain short if Nifty Future trades above 5225.

Put Call Ratio of Index Options increased to 1.39 as against 1.18 yesterday. This high level of put call ratio indicates that general perception is expecting the market to fall. If you believe, that market always proves the general opinion wrong, than have an upside bias and buy 5200 call option once market trades above 5145.

With Best Wishes,

Ketan Asher.

TURNING POINTS FOR 10.03.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE:

As expected Nifty Future remained weak with downward bias during the day and has started the process of forming lower top and lower bottom. As it has closed near the low of the day, tomorrow it should open weak, but since it has taken support on the trend line shown in the EOD chart, we have to see whether it takes support and goes up or continues downside move.

New fresh position should be created only below 5090 with stop loss of 5135. On down side it will find support at 5055 and 4985.

Long position may be taken if Nifty Future moves above 5135 with stop loss of 5100. on higher side it will find resistance at 5170 and 5225.

Put Call Ratio of Index Options increased to 1.18 as against 1.15 yesterday.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.