Thursday, January 21, 2016

Discount to Premium

Hi All,

One more observation

Nifty future had slipped in to discount in yesterday’s trading and was in discount even at the close and opening trades today. However, now the Nifty future again started to trade in premium again, it can be a very interesting observation as I have seen this happening at the short term bottoms at least.

Still, we will not jump on conclusion unless we have any other significant reason to start searching for a bottom, but keep this point in mind.

Because of the Nifty future development we will not it as a complete bearish bias and we will trade based on support and resistances according to chart confirmations


Nifty fell sharply from the resistance near 7400, and took support near higher end of yesterday’s trading range near 7330. Aggressive traders can go long with a stop loss below 7300. On a conservative side, a buy trade can be initiated above 7400.

Further intraday up move can be expected above 7355-60 levels....

Cheers

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