19th August Nifty View

In today's trading Nifty future opened near yesterday's level and for the better part of the day remained choppy and traded at discount to the spot. In the last one hour, once it moved above 5450 it had a Sharp up move - In my view mainly due to short covering and discount turning to premium. It is pertinent to note that today, Nifty Future made a new high - 5494, but Nifty spot (5488) did not make a new high.that on 9th Aug (when previous top was made) Nifty Spot made 5492 where as Nifty Future remained at 5489.

Though we have made a new high today, I would continue to remain cautious as we have trend line as a hurdle at 5514.

would not advise long position at higher levels. Moreover, we are close to the upper end of the channel which is at about 5555. At higher levels, I would take the opportunity to sell on delivery basis and be liquid to take advantage of buying on steep corrections. To sum up, at higher levels Nifty Future will find resistance at 5515 - 5545 and 5570.

Short positions may be taken below 5440 with stop loss of 5460. On down side 5400 - 5363 and 5320 will provide support.

All the best.