Nifty Future has been in negative mood after making a top around 5370 level. Now nifty future has reached its psychological support level of 5100, I am of the view that Nifty future will take support at this level as yesterdays closing has formed a Doji candle which is considered as a sign of reversal, as nifty future is trading around its support zone and Doji candle forming there is better idea to take long positions. So exact trading plan would be to Buy nifty future around 5050 – 5060 zone for upside targets as 5100 and then 5165 levels, while stop loss for this trade will be placed near 5035 level. Traders willing to take more risk may also take long positions on Nifty 5000 call option near 70-73 for target as 109 and then 165, stop loss is based on position of future if nifty future trades below 5035 then exit this position and book loss.
Results of most of the blue chip companies are out and most of them were inline the street’s expectation. So no more surprises from results front. However markets are expecting reforms from government as president elections are also over, if those reforms come then markets are going to see decent rally again. Article published on 25 July 2012.