Trading IIP Data Nifty Futures for 12 July 2011: sell below 5570 for Target 5508

Nifty futures is trading lower about 64 points, at 11:02 AM today. But the price action is suggesting some fresh selling just after the IIP number for MAY 2011 we saw very weak number from MAY IIP data. Soon the selling followed just after the release of IIP numbers. Also Nifty has broken the strong support of 5569 level and we are sure that selling is likely to follow and will be pulling the markets down. We have also seen the weak number from the software giant Infosystch. Looking at the F&O data we see that there has been some fresh short positions build up in markets. So this fall is likely in this market, as the scenario has changed very soon. So we will be looking for selling near the 5570 level for target of 5508 and 5478 levels, we also recommend to place the stop just above the 5605 level. We are sure that nifty futures will find the resistance at these (5570) level. But on the daily chart we saw nifty has changed the its trend. So this is very good opportunity, High risk traders can accumulate the 5500 put options at current level and can hold it for 2 to 3 days for target of 78 and 89. Also book loss in this put option if nifty closes above 5600 level for 2 days. Our short term strategy will be to look for selling at every rise, and book partial profit near the previous lows, Investors must stay away from the markets as there can be more downside from these levels.

At 11:05 AM (IST) Nifty is trading very negative by 63 points. Today’s trend will be down, we may see some fresh selling. Also some fresh short positions is likely to build in nifty futures near 5569 levels. Nifty Future trading range will be as shown in the support resistance levels below.

Nifty futures trading tips (12 July 2011): Sell nifty future below 5570 level for intraday target of 5508 and 5478 levels, also place Stop loss above 5605 level.