Nifty futures seen deep correction just after the RBI declared its credit policy, hiking the interest rates, reverse repo and repo by 50 bps basis points and keeping the CRR cash reserve ratio unchanged at 6%. This has brought intense selling in the banking stocks like ICICI BANK, STATE BANK OF INDIA, HDFC BANK. This panic selling came from the major market participants, as this was unexpected by the participants. Today’s correction has warned us about the much deeper correction coming in the markets in near term, we are now neutral in the short term from the current levels. So our strategy will be watch for selling at the higher levels, also our intraday targets will be 5580 and 5520 levels. We advice traders to short nifty futures at every up move. Traders are also advised to place their stop loss above 5660 level. Technical analysis suggest the market has not managed to close above the major resistance level and is more likely to test the 5560 support zone.
At 11:45 AM (IST) Nifty is trading very negative by 90 points. Today’s trend is likely to be negative for the day. Also we expect some fresh short positions is likely to build in nifty futures below 5680 level. Nifty Futures trading range for today will be as in the support resistance levels below.
Nifty Futures Levels for today:
Resistance: 5640 / 5680
Support: 5560 / 5516
Nifty futures trading tips (26 July 2011): Sell nifty future below 5645 level for intraday target of 5560 and 5620 levels, also place Stop loss above 5670 level.
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