Nifty futures didn’t managed to close above 5958 (78.6% retracement level of 4-1-2011 High to 11-2-2011 Low) mark yesterday. This may result in some profit booking, bringing nifty towards 5800 and then 5755 levels. As nifty is now consolidating before up move, we expect strong selling will pull the broader markets to lower level soon, targeting the 5755 zone. So seeing this as a good selling opportunity we recommend to go long on nifty 5900 put near 86 level for target of 127 and 161. A strong downward momentum is expected once again nifty future close below 5959 level today.
Trading Opportunity: Buy Nifty 5900 put near 86 for targets 127 and 161. Keep stop loss near 66 level or exit this call option if Nifty futures seems to trade/close above 5959 level.
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