Even though Nifty future is trading higher today, but it is still below its extreme resistance level of 5555, we will however remain bearish as long as nifty is trading below 5555 level (on closing basis). Downside risk are emerging as technical indicators are loosing the momentum from current levels. We will advice traders to stay short in today’s market, unless nifty futures closes above 5555 level. If nifty futures breaks above 5555 level and close above it for two days continuously then we will see a strong rally upto 5622 level. For intraday trading we recommend to take short position near 5550 level for target of 5494 and 5463 levels and place stop loss at 5564 level. Traders stay cautious as volatility may remain extremely high in near term (due to Japan crisis).
At 11:45 AM (IST) Nifty is trading positive by 65 points. Today’s trend will be bearish, However new short positions are likely to be added near 5550 level. Nifty Future trading range can be seen, as in the support resistance levels below.
Nifty Futures Level:
Resistance: 5550 / 5577
Support: 5494 / 5463
Nifty futures trading tips (16 March 2011): Sell Nifty Future below 5555 level for intraday target of 5495 and 5456 levels, also place Stop loss above 5567 level.
Buy Nifty Future above 5565 level for intraday target of 5591 and 5626 levels, also place Stop loss at 5548 level.