Markets are trading positive as most of the Asian markets were trading in positive territory today, so even our domestic markets saw some rally. This is just a pullback after continuously decline in nifty futures but the trend is still down. So traders must keep looking for selling opportunities as long as the nifty futures remains below 5178 on closing basis. But our short term strategy will be to look for selling opportunities on every pull back as the Risk Traders can Buy Nifty 5100 Put Option”>nifty futures is trading below its important resistance level at 5178 level. The downside in this markets is not complete yet and traders must take every upmove as a selling opportunity. We are sure that selling is likely to follow and will be pushing the markets down very soon, but in 2 to 4 sessions we expect markets to move in a tight range and consolidate for some time there. Taking a look at the Nifty futures F&O data we see that there was some fresh short positions were added to open interest and even the nifty 5100 put have seen some unwinding. Today we will be looking for selling near the 5120 level for intraday targets as 5045 and then 5018 levels, we also recommend to trade with strict stop loss which should be placed above 5170 level. We believe that nifty futures will face stiff resistance at 5125 level today. On the daily chart we saw nifty is still on the down trend. So this is very good opportunity, High risk taking traders can start accumulating the 5100 put options near 73 and can hold it for 5 to 7 days for target of 117 and 149. In case of reversal exit this put option if nifty futures closes above 5203 level for 2 days. Our short term strategy will be to look for selling opportunities on every rise, and book partial profit near the previous day’s lows, Investors can start buying in selective stocks by investing their 25% of the total investment amount. We would like to remind that downside is not yet finished and we may see much lower levels from here.
At 11:45 AM (IST) Nifty futures is trading positive today up by about 36 points. Today’s trend is most likely to be mixed, as there will be some consolidation today after we have seen huge selling in last few days. Nifty Futures support resistance levels is as below.
Nifty Futures Trading Levels today:
Resistance: 5125 / 5203
Support: 5051 / 5018
Nifty futures trading for 17 August 2011:
Short sell nifty future below 5125 level for intraday target of 5045 and 5015 levels, we also advice traders to place their Stop loss orders just above 5137 level today.