Short covering rally started in nifty futures yesterday and we are sure that this will continue till expiry of August F&O series we are sure that nifty futures will rally till 4996 levels in this week and also we expect sharp short covering in the front line stocks. Today nifty futures is trading above its strong support level of 4844 and we see that nifty is more likely to touch the higher levels reason being short covering before the F&O expiry. This correction is still not over and we believe there is much more downside still left. But for near term we see some bounce, but trend is still the same i.e down trend. For intraday traders we advice to buy nifty futures near the 4859 level for intraday targets as 4899 and then 4962 level. It is also recommended to trade the above call with a stop loss placed just below the 4835 level. Nifty futures charts suggests us to buy near 4844 level with weekly targets as 4956 level. Technical indicators are in favor of trade on hourly charts. We have noticed the crossover in slow stochastic indicator, also we have seen RSI pointing upward. Nifty futures successfully closing above the 4800 level we see markets moving up in near term, so above 4800 we must keep looking for buying opportunity in nifty futures for intraday targets as 4899 and 4962. We also expect ABAN stock to bounce in intraday trading as the stock has rallied sharply from lower levels of 333 on 18 August 2011 to 385 today. So this stock has got huge potential in short term to trade long near 380 level for intraday targets as 385 and then 389 level, the ABAN stock must continue its short covering rally. For today nifty futures has strong support at 4844 level and resistance at 4966 level. Markets are likely to be volatile as F&O expiry for August series is coming this week, so there will more volatile sessions in the coming days.
At 11:45 AM (IST) Nifty futures is trading positive today up by about 16 points. Today’s trend mus be bullish, as there will be some relief rally started by short covering, this must follow as we have seen huge selling in last few weeks. Nifty Futures support resistance levels is as shown below.
Nifty Futures Trading Levels today:
Resistance: 4900 / 4966
Support: 4844 / 4803
Nifty futures trading for 23 August 2011:
Buy nifty future above 4844 level for intraday target of 4899 and 4962 levels, we also recommend traders to place their Stop loss orders below 4835 level today.