Monday, February 3, 2014

Nifty - a possible scenario

After the flop show before expiry, here is something that bulls can look forward to:

This has happened in the past, and 'might' happen again.

On 30th January (expiry day), Nifty spot made a low of 6027.25, and Nifty futures made a low of 6025.1. This was Nifty January futures.

Nifty SPOT chart:
 



On the same day, Nifty February futures made a low of 6062.35.

Nifty futures chart:

 

This was mainly due to the premium on February futures. It has happened a few times in the past, that once the next month becomes current month futures, it visits the previous low again.

Nifty futures made a low of 6034 today, whereas Nifty spot went much below the low of 30th January (5994.95 low today).

A lot of people might be waiting to see what happens at the 200 day moving average, which is just a bit below today's low and also the double bottom near 5975 (spot).

It is possible that Nifty futures might just test 6025 and bounce from there, thus keeping the '200-dma-bulls' waiting.

If at all Nifty does give a bounce from Nifty futures 6025, the bounce retracement levels are 6130-35, or 6170 - 75, or even 6215- 20 on Nifty SPOT.

Watch Nifty futures 6025 closely tomorrow and in coming days !!

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