An increase in US Dollar liquidity by group of major Central Banks, has given very good surprise by reducing over night swap rates of USD by 50 bps. This has led all the stock markets across the globe bounce, and was responsible for this risk aversion rally in all risky assets. We are of view that this rally is short lived and bears will return in control very soon. Yesterday there were many important news flows, from India it was the Q2 GDP numbers which were at just 6.9% lower than the previous quarter, second major news release was from Euro Zone where unemployment data was released and it was at its highest point of 10.3% in euro era. Markets has just ignored these news and a rally was seen, we believe there is much more downside left in our markets and this is just a pull back for bears to take the control over the markets. Traders must take this pullback as short selling opportunity in Nifty future December series near resistance of 5000 level for down side targets as 4909 and then 4849 in 2 or 3 days view. Stop loss must be placed at 5035 level as this will negate the resistance and hence our trading idea.
Looking at technical charts we see the resistance of 5000 level is strong enough to hold the markets below it and move towards that level will initiate selling in nifty futures. High risk traders can even take positions in nifty options by accumulating nifty 4900 put options near 83 level for targets as 145 and then 175 level, traders must exit this positions if nifty futures trades above 5035 level. Now you can also learn technical analysis from your place, for more information please call us @ +91-9970777789.
Nifty futures short term trading: Short sell nifty futures near 5000 level for positional targets as 4909 and then 4849 level, while keeping stop loss orders just above 5035 zone.