Nifty future has today seen a bounce while trading at a major support region. Today, we have seen front-line majors bouncing after the recent sell off, this may be an indication of coming relief rally in next few trading sessions. Nifty future is more likely to head towards the 5740 area i.e its first resistance. The medium term uptrend is likely to resume and very limited downside is seen at this point in time.
Our trading strategy is to look for buying opportunities in nifty futures around support zone. In Nifty 5500 is very important region as there is 38.2% retracement level present, also rising trend line is acting as a support on weekly chart. Also, we have seen 5 impulse waves in downward direction so a relief rally with 3 waves must be seen very soon.
Nifty future trading strategy:
Buy nifty future around 5550 for positional target of 5750 and a protective stop loss must be placed few points below 5500. Risk-reward ratio is comfortable and makes the trading risk worth taking. High risk taking traders can even buy Nifty 5600 call options at 50 with positional target as 120 and exit this position if nifty future goes below 5500 level. Article published on 11 April 13.