Nifty Futures Firmly Trading Below 4966 Level Today, Fresh Short Selling Seen in Nifty Futures, Todays Strategy: Sell on Bounce

Nifty futures was trading in negative zone today, at 11:30 AM today it was down by 49 points. Our today’s trading strategy will be to search for short selling opportunities as nifty futures is trading below its strong support of 4966 level now. Yesterday the European markets saw huge sell off, we have seen Germany’s DAX index was trading down by more than 5%, also most of the Asian and European markets were still in red. A new 52 week low was made by the European markets. So this is a bad news for Indian markets as well. So for now we must keep shorting nifty futures for targets as 4800 and then 4720 levels. Selling momentum has restarted in most of the heavy weight stock, like Reliance, State bank of India, DLF, Reliance Capital, ICICI bank, TCS, Infosys and many more stocks. This can be a very good opportunity for swing traders as well as intraday traders to add short positions in nifty futures to their portfolio. We recommend to short sell nifty futures near 4960 levels today and hold it for targets as 4844 and then 4811 levels. Placing the stop loss orders just above 4980 level on closing basis. Taking the advantage of long term down trend, traders should go short on nifty futures. Trading volume is not that high till now it is just Rs.45,000 crores till 11:30 AM. High risk traders can even take long positions on Nifty 4900 put options near 98 level for weekly target of 146 and then 179 level. We also advice to exit this positions if nifty futures closes above the 4990 mark for 2 days continuously. Today we have seen short position build up in nifty futures as there was sharp jump in open interest, we have seen nifty futures added about 23 lakh shares in open interest today. So this indicates that most of the traders are betting by being short in the markets. Even technical analysis suggest to take short positions only for near term trading.

Resistance: 4966 / 4999
Support: 4923 / 4850

Sell nifty future below 4960 level for intraday targets as 4920 and 4878 levels, we also recommend traders to place their Stop loss orders right above 4989 level today.