Nifty futures seen deep correction in the early hour of trade, the panic selling came from the major market participants, as there was some talks going on for the Mauritius DTTA, we also saw the huge selling in the stocks like GTL and the GLTINFRA, as it is said that these companies has about 11% of holding from the Mauritian company technology infra. Today’s correction has warned us about the much deeper correction coming in the markets in near term, we are not at all bullish for short term from the current levels. So our strategy will be watch for selling at the higher levels, also our targets will be 5050 and 4800. We advice traders to short nifty futures at every up move. Traders are also advised to place their stop loss above 5460 level. Technical analysis suggest the market has broken major support and is more likely to test the 5050 support zone.
At 11:50 AM (IST) Nifty is trading negative by 67 points. Today’s trend will be bearish, however we may see some fresh short position build up below 5301 levels today. Nifty Future trading range will be as seen in the support resistance levels below.
Nifty Futures Levels for 16 June 2011:
Resistance: 5305 / 5375
Support: 5273 / 5238
Nifty futures trading tips (20 June 2011): Sell nifty future below 5301 level for intraday target of 5267 and 5247 levels, also place Stop loss above 5323 level.