F&O CALLS FOR 4TH JUNE 2019

On 3rd June, the markets zoomed up to new heights and closed at all time high. It broke the previous highs of about 12025, which we had mentioned if breached upwards, will result in newer heights. So what can we expect today, considering that

  • Global markets on 4th (Asian Markets and Dow Futures) are subdued.
  • 5th June is a holiday
  • 6th June is the RBI policy day, and most market players are expecting a minimum of 25 basis points cut.
  • 3rd June, markets rocketed upwards.

Our call is today the markets will be in rangebound state, taking some rest before taking a direction based on 6th June RBI rate decision.

Calls for today

  • Sell at 12120 levels or at when Oscillator indicators are at high. I use Williams % R, and sell when 5 min Williams is at -5 or more, ie when prices in the 14 period William%R show that prices are peaking up.
  • Buy at the 12025 levels, keeping a stop loss of 12015.

Daily Charts

The uptrend started on 20th May remains, the prices closed well above the 9 and 20 EMA and cross over happened the next day (it could have been false move, but confirmed after the continuation of the upward prices). Typically, after such a large move of 1%, the market takes a pause. We can expect the market not to fall below the 12000 levels, or even the 12026 levels as seen from the daily charts.

Hourly Charts

The key pivot support from hourly charts is at 12035 levels. The market can expect to be finding support in his range. While the overall uptrend will remain, the markets may swing up and down today between a newer higher and the levels of 12030.

It is important to understand that in a ranging market, the EMAs may not always be the best indicators. They may help at a micro level, ie at 1 min interval, but that is too volatile for a retail trader. Pivots, 5 min 20 EMA, and William%R may provide some insight on what action to take today. Intraday today, is not going to be a trending day.

Disclaimer – the author Krishna Rath, also takes trade and may take additional trade as the movement of the market indicates.

Warning: Dealing with Futures and Options is considered highly risky and there is all possibility of losing the entire capital in a single day. The recommendations provided here are only for those who understand the risks of F&O. You must undergo a risk profiling before taking positions in F&O. Proper risk management – ie stop losses and money management is more important than just technical analysis.

All charts are screenshots from Zerodha, which is one of the best discount brokerage firms! Awesome tools in it.

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