Looking at the charts, we see nifty is making series of lower tops and lower bottom, hence downtrend is still valid. Being a trend chasing trader we will be looking every pullback as selling opportunity on nifty future. Every pullback will give us new short sell entry on Nifty future; this entry can be timed with the help of indicators like RSI, MACD, CCI or Slow Stochastic. In our case we will be using Slow stochastic, now in case of down trend we will wait for stochastic to give a crossover on over bought region that is above 80 zone on stochastic indicator. This is just a way to get better and confirmed trading entry in case of down trend. So whenever there is pullback in Nifty future, it will be best to go short near resistance level along with slow stochastic indicator.
About Bhaveek PatelBhaveek Patel is technical analyst and investor, his areas of interest includes stock market, forex and gold.
WE FII HAS SOLD 87,239 CONTRACTS NOW NEW TARGET FOR NIFTY IS 7721.10.WE HAVE ALSO BOUGHT 8000 PUT OPTION WHICH OI RISE TO 42,00,000