Nifty future has rallied from 4550 level to current 5370, being an 800 points positive move straightway. But for now key resistance for nifty spot lies at 5400 level. Moreover nifty 5400 call option has highest open interest hence limiting nifty future current uptrend to 5400 level. Trade setup using this information, will be to go short on nifty future around 5380 level for positional targets as 5300 and then 5222 level. Nifty future charts suggest traders to place stop loss just above 5420 level, this trade should be held for at least 6 trading sessions. Up move of about 800 points without correction is just indigestible thing, so a correction of at least 200 points is likely and we believe this correction will be next buying opportunity for traders who missed this strong rally on nifty future. Banking stocks which seems to have build strong upward momentum earlier are now getting tired, so even there some handsome profit booking is likely, when nifty future reaches 5400 level. Change in nifty future open interest hints me of some long positions were shed from total open interest, however we still did not see huge amount of short being build. so we concluded that it was profit booking in uptrend and only pullback is possible in near term in nifty future.
High risk traders can also buy some nifty 5300 put option around 68 level for targets as 100 and then 111 level, keeping stop loss 5420 as spot level of nifty.