Nifty future was trading in 5700 – 5950 range for last 22 sessions (about a month), heavily consolidating, yesterday we saw the breakout below 5700 level, suggesting more downside to come. Also keeping interest rate decision in mind by RBI yesterday we saw panic selling after the hike in interest rates by 50 bps. At CMP we will however remain bearish as long as nifty is trading below 5705 level (on closing basis). Technical indicators are showing negative momentum from current levels, we are confident that the recovery will take more time. We will advice traders to remain short in nifty in today’s market. For intraday trading we recommend to take short position only below 5567 level for target of 5507 and 5417 levels and place stop loss at 5578 level. Intraday traders stay cautious as near term volatility may increase significantly due to volatility caused by RBI rate decision yesterday.
At 11:40 AM (IST) Nifty is trading negative by 49 points. Today’s trend will be bearish, However fresh short positions are likely to be added near 5560 levels, also long unwinding is likely to at lower level. Nifty Future trading range can be seen, as in the support resistance levels below.
Nifty Futures Level:
Resistance: 5567 / 5598
Support: 5507 / 5418
Nifty futures trading tips (4 May 2011): Sell Nifty Future below 5567 level for intraday target of 5507 and 5418 levels, also place Stop loss above 5578 level.