Huge selling pulled the nifty to 5400 levels in last week, we saw nifty making series of lower high and lower lows suggesting a strong downtrend. Nifty has moved from 5900 to 5400 in a very short period of time. Today Nifty futures is trading lower by 30 points, but still we will be trading short in this market scenario as the technical indicators like RSI is loosing the momentum and strongly pointing downward. This may be a chance to add fresh short position as the petrol prices were hiked by Rs.5 last week, so fundamentals as well as technical are suggesting the downtrend. So from the current levels we will be looking for only selling opportunities as long as nifty futures closes above 5570 for at lest 2 trading sessions. Also we are expecting the the targets for nifty as 5200 in short term. All the upside is currently capped by 5570 level (on closing basis). For intraday On the downside targets we find 5447 level. For intraday trading nifty futures must be traded short below 5555 level for target of 5501 and 5448. A protective stop loss must be placed around 5575 level.
At 10:23 AM (IST) Nifty is trading negative by 35 points. Today’s trend will be bearish, However fresh short positions are likely to be added near 5555 levels in open interest. Nifty Future trading range can be seen, as in the support resistance levels below.
Nifty Futures Level:
Resistance: 5555 / 5567
Support: 5505 / 5447
Nifty futures trading tips (16 May 2011): Sell Nifty Future below 5555 level for intraday target of 5501 and 5447 levels, also place Stop loss above 5575 level.