The month of March 2011 is good for the markets as we saw Nifty bouncing back from the lower levels of 5350. closing for the first time above 5350 in March 2011, discontinuing its down trend. On last Friday Nifty didn’t managed to close above its resistance of 5555 level which can still act as resistance for the up trend in short term. If Nifty futures trades above 5555 for 2 sessions continuously then we can touch 5650 level in one or two sessions. Also on downside if Nifty breaks 5500 and closes below that level for at-lest 2 days then the down trend will continue and create more selling pressure hinting 5276 level and then 5069 level. So a trader has to be cautious at these levels and trade with strict discipline.
When we talk about nifty futures we are more likely to bounce back to 5650 levels. Technically nifty is having strong resistance at 5655 level. Support at 5501 and 5416.
Our trading strategy for next week 7 March 2011 : Buy nifty above 5555 level for weekly target 5650. Also place stop loss near 5494 on closing basis.
Alternate scenario:
Sell Nifty Futures below 5400 for weekly target 5295. Stop loss should be placed near 5445 on closing basis.
We Expect Nifty to Touch 5650 Next Week
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