Yesterday's double top did have its effect on Nifty Future today. After opening at yesterday's close level, Nifty Future remained sideways, with downward bias for better part of the day. After the mid session, it went down to make a low of 5943 and closed at 5972. The notable point being that after about 9 days, for the first time Nifty Future made a lower top/lower bottom. However we must accept the fact that Nifty Future is showing buying/short covering at lower levels - resulting in close much above the day's bottom.
For tomorrow, one can consider going short when Nifty Future goes up to about 6000 with strict stop loss of 6020. Alternatively, in case of weak opening, one can go short with stop loss of 6000.
On down side, Nifty Future will find support at 5940 and 5900. Tomorrow being last day of the week, if Nifty Future closes below 5940 there is good possibility that my expectation that Nifty Future will top out this week may come true. Though it is too early to say it with certainty as we are heading for FNO settlement next week and hence short positions should be taken with strict stop losses. For any reason, if Nifty Future closes below 5890 tomorrow, it should be considered as first sign of weakness.
All the best.
All the best.
