Nifty Futures August Series Technical Analysis For 2 August 2011, Short below 5485

Nifty futures is trading very negative today, at 1:30 PM today it was down by 52 points. We will be looking for selling opportunities as nifty futures is trading below its strong support of 5500. Also there was huge selling yesterday, and this momentum has continued. So this is very good opportunity for intraday traders to occupy short positions in nifty futures for today’s trade. We will recommend to sell nifty futures near 5485 levels today and hold it for targets as 5455 and then 5430 levels. Placing the stop loss above 5503 level. Taking the advantage of this down trend, traders should go short on nifty futures. This Q1 result season has not been very good for the markets specially the large-cap companies has disappointed the market participants. Even the today’s trading volume is very high near the Rs.94,000 crores till 1:50 PM. High risk traders can even take positions on Nifty 5400 put options near 74 level for short term target of 89 and then 105 level. Also exit the positions if nifty futures closes above the 5502 mark for 2 days continuously. Today we have seen short position build up in nifty futures as there was jump in open interest by 14% and we have seen about 30 lakh shares added in nifty open interest today. So this indicates that most of the traders are betting by being short in the markets.

At 1:30 PM (IST) Nifty was trading negative by 73 points. Today’s trend is likely to be bearish for today. Also we expect some fresh short positions is likely to build in nifty futures below 5465 level, in F&O August series. Nifty Futures trading range for today may expand as seen below.

Resistance: 5475 / 5505
Support: 5415 / 5385

Sell nifty future below 5485 level for intraday target of 5455 and 5430 levels, also place Stop loss above 5505 level.