Nifty futures was unable to break above the 5170 level yesterday and hence we have seen good amount of selling in nifty futures September series today. Since the 5170 level was a strong resistance level for now. We are expecting nifty futures to target the 5100 level and then 5056 level. Also the global markets has started to weaken yesterday just after the ECB (European Central Bank) has kept its interest rates unchanged at 1.5%. Also the BoE (Bank of England) has kept its interest rates unchanged yesterday. So there was an expectation by investors that ECB will lower the interest rates this time, so a clear selling was seen in the European markets yesterday, even this selling was seen in American markets as well. So now we have these two reasons to go short on Nifty futures below 5170 level today for targets as 5100 and then 5055 level. stop loss orders must be placed just above 5190 level. We are sure that selling will arrive the markets soon, long term trend was also bearish and this short positions is in the direction on the daily trend, so there is high probability of the positive outcome from this trade. Market participants mainly the FII were net sellers yesterday as they have sold the shares worth Rs.19 crores on yesterdays trading session. We believe HNI’s are placing their bets on short side from the current levels So this crucial level (5170 level) should hold and selling can be expected from here in near term. We can only say that upside is now capped at 5180 levels from here, as the global events may create more selling pressure than the domestic events. So keeping this in mind we advice traders to take short call on nifty futures adding short positions in nifty futures near 5170 level for intraday targets as 5100 and then 5055 level. This strong resistance is previous support level that was broken by huge sell off. Taking a look at technical analysis charts we see that selling is expected before any up move from here. The technical indicators are still suggesting the downtrend and trading with the trend we will add short positions in nifty futures with a tight stop loss placed just above 5190 level. We have already predicted this level in our previous week analysis that markets must bounce next week towards 5170 level. Some large cap stocks are facing selling pressure today names like TATA Motors, TATA Steel, Reliance Industries, Sterlite Ind, JP Associates, DLF, ACC, and all the major IT stocks like Infosys, TCS, Wipro has also been the major losers.
At 11:15 AM (IST) Nifty futures is trading in negative zone today, down by almost 29 points. Today’s trend should be bearish, as nifty has faced strong resistance at 5170 level yesterday, so large swing moves can be seen in this session. We also see some fresh short positions being build up near 5142 level. Take a look at our Nifty futures support resistance levels.
Nifty Futures Trading Levels today:
Resistance: 5170 / 5200
Support: 5100 / 5055
Nifty futures trading for 9 September:
Short sell nifty future below 5170 level for intraday targets as 5100 and then 5055 levels, It is also recommended to place Stop loss orders right above 5190 level today.