15th SEPTEMBER NIFTY VIEW

In today's trading Nifty Future opened strong and made a new high at 5845 and corrected to make a low of 5778 and then remained stable to close at 5812. In making the new high at 5845, market has provided some maths,

which is as follows:

On EOD chart previous high = 5543
Less: Recent low = 5356 + (187 x 2.618=489) = 5845

In view of the above, I am inclined to suggest that existing long positions are better liquidated as Nifty Future should see a correction, before continuing its upward march. If you are still looking for upside you will do well to keep a tight stop loss of 5750.

Those who are willing to take some risk may buy puts of 5500/5600 strike price which is having the last traded price of Rs. 15.45/24, as going short with naked future may be a risky proposition at this stage. Unless Nifty future moves below the trend line on EOD chart at 5700, possibility of the up move continuing after a pause/correction can not be ruled out.

The correction can come down till the previous low of 5543 and only close below 5543 should be considered as a serious threat to this up move.

All the best.