Nifty future is in Downtrend and so traders should only look for selling opportunities on every bounce. On charts we have seen that Nifty future has some resistance near 4800 level, as 23.6% Fibonacci retracement level and 200 Days moving Average coincide near 4800 level. So any pull back towards 4800 level must be taken as opportunity to short selling Nifty future of January series. Targets for this short positions should be 4700 and then 4660 levels, How ever traders must place their stop losses few points above 4848 level. We have seen global markets are trading in Green and even the data from US is showing strength in terms of demand for US dollars. We may see Indian markets to under perform as weak Indian Rupee will weaken further in short term as compared to USD. There are many other fundamental reason to go short on Nifty future in January series, however we are not convinced with trading volumes in markets, as many of traders are away from markets enjoying their holidays. This is one of the reason we suggests you to stay cautious in this trade. Traders can even buy Nifty 4800 Put options only near 120 – 130 level, for positional targets as 170 and then 185 level. Stop loss being placed at 90 level. There are stocks that are still in Uptrend like IGL, M&M stock.
Nifty futures positional trade for January F&O Series: Short sell Nifty future near 4800 level for first target as 4700 and second target as 4660 level. Traders are also advised to place stop loss for this trade above 4848 zone. Even positions can be taken on Nifty 4800 put options.