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S&P500

S&P500 Futures Analysis- 05Apr2024

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The S&P500 futures had a sharp sell off yesterday on 4th April 2024, and closed below 5200, at 5297.

The S&P500 futures are now also trading well below their 10 day Moving Average (SMA), which is near 5270, and it will act as a resistance now. So this is a not a safe setup for new long trades, but the futures are likely to recover and retest the 10 days SMA in the next 1-2 days.

Therefore, we can expect the S&P500 futures to bounce back to at least 5250-5260, and go near 5270 to test the 10 day SMA. So the current rate of of 5218 presents a tactical buying opportunity for large traders to create a small long position. But this is not suitable for smaller traders who trade with fewer contracts.

Update: The The S&P500 futures bounced back to the levels of 5250-5260 today itself by end of day. However, the they are still below 10 day SMA and the momentum indicators are still in a weak position, so there is no new long trade.

Nifty Futures, Nifty50

Nifty50 Analysis – 01Mar2024

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Nifty50 index has moved up with good momentum, as shown by the CCI indicator. The momentum was consistently weak and falling for last several days, and therefore, all green days earlier were suitable only for buying cheaper Put options rather than taking new long positions. Today’s upmove in momentum in the daily chart was already visible in the 3-5 hour charts yesterday. However its very difficult to predict the exact size of the upmove.  Nifty moved up by 356 points today, which is one of the largest single days moves of the last 3 years. It also came on the first day of the new F&O series and first day of new month/March. Upside of 22,500 – 22,600 are visible as the main targets ahead.

Key Nifty Support Level is 22K, so Traders can stay long above 22K for targets of 22,500 and 22,600.  Major Nifty resistance levels can come around 22,700.  Therefore, Nifty Call Option Trading Strategy should be to keep trading with Nifty 22,500 Call of 7 March and 14 March expiry.