Standard and Poor’s (S&P) has today downgraded India’s outlook to negative. As there were many factors responsible for slowdown in foreign investment and also GDP growth which has direct impact on the trade deficit (current account deficit). Now current rating for India is BBB- and has also been warned that India still has 1 out of 3 chance of a downgrade, if situation further become worse.

Just after release of this news Nifty went down by 70 points and also Sensex lost as much as 180 points with in few minutes. Indian rupee also took a hit by sliding towards 52.67 against US dollar.

Nifty future intraday trading:

Moreover nifty future was trading at 200 days simple moving average (Green line on below chart), which on daily chart is at 5150 level. Some recovery should be expected in market. Today’s trading idea is to buy nifty future in small quantity near 5157 for intraday target as 5197 and second target at 5217 level. Stop loss level for above trade is at 5137 level. Traders must book partial profit at first target and trail stop loss to cost, then wait for second target. Traders be careful as S&P downgraded India and this can keep nifty future lower for coming sessions, if support of 5150 breaks. Pay attention at the below chart of nifty future.

In this daily chart green line is 200 days SMA and you can see how same level acted as support previously for nifty future. Share your comments below to discuss nifty future near term trend and direction. Like us on Facebook and follow us on Twitter. Now you have decent opportunity to learn technical analysis online for DEMO session call me on +91-9970777789.