Indian markets are trading positive as most of global markets were trading in positive zone today, so even our domestic markets saw some relief rally from its 20 sessions falling streak. This is just a pullback due to short positions being covered, after continuously decline in nifty futures but the trend is still down for short term. So traders must keep looking for selling opportunities in Nifty futures as long as the price action remains below 5178 (on closing basis). But our short term strategy will be to look for selling opportunities on every pull back as the nifty futures is trading below its psychological level of 5000 and also important resistance level at 5178 level. The downtrend in this markets is not yet complete yet and traders must take every bounce as a selling opportunity. We are sure that selling is likely to come soon on ever bigger picture and will be pushing the markets much lower levels from here, in 3 or 4 sessions we expect markets to touch 4800 again as this Friday US will be releasing the NFP (non farming payroll) data, which is expected to be negative for economy. Taking a look at the Nifty futures F&O open interest data we see that some fresh short positions were added to open interest yesterday mainly by the FII and even the nifty 5000 call options has added shares in open interest, while nifty 4600 put options has seen some unwinding from open interest OI. Today we will be looking for selling below 4959 level for intraday targets as 4909 and then 4848 levels, we also recommend to trade with strict stop loss which should be placed just above 5004 level. We believe that nifty futures will face stiff resistance at 4970 level today. On the daily and weekly chart we see nifty futures is still on the down trend. So this is very good opportunity, High risk taking traders can start buying nifty 4900 put options near 90 and can hold it for 5 to 7 days for target of 173 and then 212. In case of reversal exit this put option if nifty futures closes above 5015 level for 2 days. Our short term strategy will be to look for selling opportunities on every rise, and book partial profit just near previous day’s lows. We would like to remind that downside is not yet finished and we may see much lower levels from here, trade cautiously. Two days holiday on occasion of ID-Ul-Fitar and Ganesh chaturti, will cause volatile moves in market today so it will be advisable to hedge your open positions today.
At 10:45 AM (IST) Nifty futures is trading positive today up by about 33 points. Today’s trend should be mixed, as there will be volatile moves due to 2 days holidays in next 2 days, so large swing moves will be seen in this session, We may also see some fresh short positions being build up below 4962 level. Check our Nifty futures support resistance levels.
Nifty Futures Trading Levels today:
Resistance: 4970 / 4999
Support: 4903 / 4845
Nifty futures trading for 30 August 2011:
Sell nifty future below 4959 level for intraday target of 4909 and 4848 levels, we also recommend traders to place their Stop loss orders above 5007 level today.