Nifty future is trading flat today, I am expecting market to consolidate before we see any up move. Nifty future has already moved higher by 150 points in this July series, some profit taking will be seen. So here onwards every pullback is buying opportunity, my trading strategy for nifty future will be buy on every dips. I will be using slow stochastic indicator to time by entry, when nifty future becomes oversold on 1 hour time frame.
Global markets were looking supportive last week but I am a bit cautious as today china has released its manufacturing data, which was at its lowest in last 7 months. Even US confidence data released last week was also weaker, so I am cautious on global market front. Also today at 2:50 pm IST we will see Euro zone’s unemployment rate data will be coming out, which we believe will be higher than previous month. In the evening at 7:30 pm IST, US manufacturing data for June will be released which is expected to be 52 compared to 53.5 last month. So these are some major events that may inject negativity into the global markets. Hence stay cautious.
I am not sure when this consolidation will end, but trading idea on nifty future will remain same, buy on every dips. I have already said the targets will be 5360 and then 5400 in my previous article on June expiry. Domestically we will be soon seeing first quarter result for most of the large companies, which will decide direction of market going forward. Published on 2 July 12