Nifty futures is in downtrend and is more likely to be bearish and so we will be looking for only selling opportunities as long as nifty futures is trading below the 5200 level on 2 days closing basis. So taking the advantage of this down trend we recommend traders to go short in nifty futures near 5170 level or one can accumulate the Nifty 5100 put options and hold it for near term target as 127 and then 155 level. traders can place their stop loss near the 60 level. We have confirmed the down trend with the help of technical analysis and as it is said traders must follow the trend and take the trade in the direction of the daily trend. So this opportunity can also be taken by the nifty options traders, So we advice traders to buy nifty 5100 put option. In near term, we may see strong selling coming in nifty futures below 5180 level. This position is completely based on technical analysis on nifty futures. Taking a look at open interest data we see that long positions has been added in nifty 5100 put option also call writing was witnessed in nifty 5300 call options strikes. This can be very good indicator for taking long positions in nifty 5100 put option. Also the charts of nifty futures states that the recent fall in global markets and in Indian markets was very strong as volumes has increased sharply in last 15 trading sessions. This selling may pause near 4856 level and after trading below this level we see a very strong selling pulling markets near 4686 level. But in between we don’t see any any support in nifty futures.
Free Nifty Options Recommendation:
Buy Nifty 5100 put options near 80 level for targets 127 and then 155 levels. Place stop loss orders just below 60 level or traders may exit this put option if Nifty futures close above 5202 level.