After continuous buying, we saw nifty making series of higher high and higher lows all suggesting a strong uptrend. We have rallied from 5555 to 5900 in a very short period of time. Today Nifty futures is trading higher by 60 points, but still we will be trading cautiously as the technical indicators like RSI is loosing the momentum. This may be a chance to book profit for the long positions, also those who has missed the opportunity of buying at lower level can look for buys on every dip from the current levels. We see break above 5858 level will bring some buying by the market participants, mainly by FII and the retail traders. This is something that will bring the strength in the markets for short term. On the downside targets we find 5800 level. For intraday trading nifty futures must be traded short near 5889 level for target of 5858 and 5816. A protective stop loss must be placed around 5905 level. As today is F&O expiry of march series so markets may trade with high volatility.
Nifty Futures Level:
Resistance: 5906 / 5942
Support: 5858 / 5811
Nifty futures trading tips (31 March 2011): Sell Nifty Future below 5889 level for intraday target of 5858 and 5816 levels, also place Stop loss above 5905 level.