Nifty Futures In the Green !
Nifty future has bounced back from the previously indicated support zone of 5350 - 5400, though the lower end of the zone was slightly broken on last Wednesday. Although it was indicated in the previous post that some of the stocks would be coming under negative pressure from the derivative expiry and therefore, the expiry would be near the strike of 5300, it was not be. This guess was made due to new selling seen in in the money (ITM) 5300 call options on last Wednesday. However, massive covering of ITM 5300 calls were seen during the trading of Thursday, right from the beginning, invalidating the previous guess.
Now the important question is whether the present bounce is a change of trend or not. At present it is difficult to predict, except for accepting the facts of the reasonable support of the 5350 - 5400 base and also the support of the lower boundary of the old trading channel. Moreover, trailing valuations are also at around the one and a half year lows. Therefore a rally to the middle of the trading channel can not be ruled out at present. Anyway lets see what the Momentum Signal indicates in the next few days !
Nifty Futures - Intra-day Chart
Nifty Futures - Daily Chart
