TURNING POINTS FOR 08.12.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :

In today's trading, Nifty maintained a downward bias till about mid session and made a low of 5956 and in the second half managed to show gains and made the day's high of 6022 and closed the day at 6010. With US markets performing well and considering good close for the day, we can safely expect a firm opening tomorrow and once again reviving hopes for continuation of the up move. For the second day in a row, Bank stocks remained weak and closed at the lower end of the day and lost over 6% in two days. 11655 may be used as a reference point for considering upside above it and further downside below it.

For tomorrow, while up move seems certain, one needs to be very cautious on the long positions as 6100 can once again be a hurdle and hence any long positions should be taken with that level as a reference point till it is breached on the closing basis, However, as a matter of abundant caution, short positions should keep a stop loss of 6040.

Short positions should be taken at higher levels with a stop loss of 6110. On the down side, it will find support at 5950 - 5910 - 5885 and key support at 5850 below which the fall will accelerate. In case of a weak opening, 6040 can be used as a stop loss for short positions.

Put Call Ratio of Index options marginally increased to 1.18 as against 1.07 yesterday.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

TURNING POINTS FOR 07.12.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :

As expected, Nifty Future had a firm opening and made a high of 6094 during the first half of the day, but could not sustain at higher levels and made lower top lower bottom in the second half of the day and made a low of 5988 and closed weak at 6002. We saw a range of 106 points and that too with a weak close. Not a great thing to happen on the 1st day of the week. Those who like to understand the fall must see both the charts attached herewith.

For tomorrow, one should consider going short only below 5970 with stop loss of 6010. As shown on the 30 min chart, we have number of supports viz. 5950, 5910, 5885 and last key support of 5850. While this level looks little far off today, one needs to be cautious with long positions, as I always maintain that - while falling Newton's Law helps.

Considering the fall today, the weakness is apparent particularly in the Bank Stocks, hence I would not advise long positions at all, even in Nifty Future. However, as a matter of prudence, existing short positions should be trailed with stop loss of 6045 (Never fight the market) as weakness will accelerate only below 5900.

Put Call Ratio of Index Options decreased to 1.07 as against 1.26 on the previous trading day.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

TURNING POINTS FOR 06.12.2010

NIFTY FUTURE 30 MIN/NIFTY FUTURE EOD

NIFTY FUTURE:

In Friday's trading Nifty Future remained sideways through out the day and the intra day fall recovered by the end of the day to close the day/week @ 6017. It should be noted that even for the 2nd day, Nifty Future could not cross the mid point level of 6038. If it manages to clear this level tomorrow, it can take Nifty Future to the next strong resistance at 6100 due to multiple reasons shown on the EOD chart.

For tomorrow, fresh long position should be considered above 6050 with stop loss of 6000. On the higher side, it will face strong resistance at 6100 and hence it will be better to close long positions in Nifty Future as well as front line stocks. At the first weakness in hourly/30 min chart, one can consider going short with stop loss of 6125 or sell 6100/6200 call option, depending on the risk profile.

In case of weak opening (looks very unlikely), one can consider going short, below 5965 with stop loss of 6000. On the downside, it will find support at 5940 - 5910 and 5875.

Put Call Ratio of Index Options remained almost same at 1.26 as against 1.23 on the previous day.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.