Markets has seen smart pullback as yesterday the US markets were trading higher by more than 4% especially the Dow Jones index. So this pull back rally was seen across the global markets, almost all the Asian markets were trading in green. But our short term strategy will be to look for selling opportunities on every pull back as the nifty futures is trading below the 5230 level. Nifty has broken the strong support level of 4950 this Monday, so the downside in this markets is not finish yet and investor 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 for 2 days we expect markets to move up on short covering note. Taking a look at the F&O data we see that there was rally short covering as position were cut from the open interest OI in markets moving stocks and nifty futures. For today we will be looking for selling near the 5180 level for intraday targets as 5125 and then 5088 levels, we also recommend to trade with strict stop loss which should be placed above 5205 level. We believe that nifty futures will face stiff resistance at 5180 level. On the daily chart we saw nifty is still on the down trend. So this is very good opportunity, Risk taking traders can start accumulating the 5100 put options at current level (89) and can hold it for 5 to 7 days for target of 107 and 119. In case of reversal exit (book loss) in this put option if nifty closes above 5205 level for 2 days. Our short term strategy will be to search for selling opportunities at every rise, and book partial profit near the previous lows, Investors can start buying in selective stocks by investing their 20% of the total investment amount. We would like to remind that downside is not yet finished and we may see much lower levels.
At 10:45 AM (IST) Nifty futures is trading positive today up by about 104 points. Today’s trend is most likely to be bullish, on the short covering after we have seen huge selling in last few days. Nifty Futures support resistance levels is as below.
Nifty Futures Trading Levels today:
Resistance: 5205 / 5252
Support: 5117 / 5078
Nifty futures trading for 10 August 2011:
Short sell nifty future below 5180 level for intraday target of 5125 and 5088 levels, we also advice traders to place their Stop loss orders just above 5207 level.
Alternate situation:
Buy Nifty Future above 5227 level for intraday target of 5251 and 5288 levels, also place Stop loss for this long positions at 5178 level.
About
very nice analysis bhaveek bhai, I got more than 120 points in 2 days trading. i trade only nifty fut and option, you are like God to me. I am not a rich person but i am sure you will make me rich in 3 to 5 year.
Gaurav, thanks for your complement. Well I would suggest you to follow the strict trading rules or do technical analysis course.
bhaveek is short covering over?? can i short nifty future on monday??? please reply.
Short are still not covered that aggressively, we may see huge covering in next week as American markets bounced after the Bernanke speech, by more than 4% on Friday. so this can bee seen on the Monday’s trading session. We advice to wait and watch.