Nifty future daily chart is opening another solid selling opportunity, on nifty future chart we see a declining trend line is acting as resistance for price action. Moreover 200 SMA is around 5190 level hence making that resistance level much stronger, Nifty 5200 call option has highest open interest, hints 5200 level a resistance for now. So we have 3 confirmations for this trade, first declining trend line, second 200 SMA (Simple moving average) and third is Nifty 5200 call option. These three confirmation are enough to enter short position on Nifty future February series near 5180 level for target of 5000 and then 4900 level, placing stop loss orders just above 5230 level, hence making this trade worth taking if you notice Risk reward ratio it more than 1:3. Slow stochastic indicator suggests Nifty future is extremely overbought, hence it will attract short selling. Mean while index heavy weights like Icici bank, Sbin are facing resistance at resistance zone and unable to break above it, so front line stocks being responsible for down move in nifty future. Also 5200 level being 38.2% Fibonacci retracement level, so we are 100% sure about success of this trade setup. High risk traders may take positions in Nifty 5100 put options around 85 for target of 160 and then 190 level. Stop can be under 60 level.
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