Nifty futures yesterday didn’t manage to close above its strong resistance level of 5568. So we saw this selling pressure continuing and taking nifty futures to the lower levels of 5518 for intraday trading view. The mood of market participants is looking bearish especially the FII, as they have been selling continuously in equities. Also looking yesterday’s F&O open interest data we see that there was some call writing and positions unwinding in put options. Volumes in F&O space was very high than the last 7 days. so this also suggest that there must be selling arriving the markets soon. Intraday traders, we will advice you to enter short positions in Nifty futures below 5568 level for target of 5518 and then 5478 levels. Also recommend to place their protective stop loss above 5585 levels. Also on every up move we are expecting some fresh selling in Nifty futures. Technical indicators are in favor of short positions for intraday trading. Traders who are holding the nifty 5500 puts yesterday can hold them for their second target of 89 level, and trailing stop loss to 71 level.
At 11:15 AM (IST) Nifty is trading positive by 50 points. Today’s trend will be mixed to positive, we may see some volatility in markets. Also some fresh short positions is likely to build in nifty futures near 5568 levels. Nifty Future trading range will be as shown in the support resistance levels below.
Nifty Futures Levels for 13 July 2011:
Resistance: 5574 / 5606
Support: 5515 / 5475
Nifty futures trading tips (13 July 2011): Sell nifty future below 5568 level for intraday target of 5518 and 5478 levels, also place Stop loss above 5585 level.
Buy Nifty Future above 5607 level for intraday target of 5635 and 5674 levels, also place Stop loss for long positions at 5580 level.