Nifty future today was trading positive with about 20 points gain compared to previous close. On Hourly chart, I saw positive divergence being formed and in am waiting for bounce in next few candles. As soon as Euro Zone GDP data was released this trade became valid from global market front, euro zone has posted GDP growth at 0%, at least better than contraction (negative growth). So my intraday strategy will be buy nifty future at 4920 for target as 4955 stop loss at 4900 level.
Analysis for near term:
Nifty future has added 13 lakh shares to open interest today, also at the time of writing this article cost of carry was also positive, so discount has now been converted into premium in nifty. This is because short sellers were covering their shorts and bulls were adding long positions, that is why we saw bullish divergence on chart. Possibly I will hold onto this trade for next few days and see if there was some miracle left for me. 🙂 My trading style is based on technical analysis and use fundamentals as well.