Nifty Futures follows its last week trend, Trading down by about 130 points, We advice trade short in Nifty Future

Nifty futures continues its last week trend, today its again down by about 130 points this is more than 2% fall, Even the Asian markets are trading lower today. The closing that we have seen in last week advices us that it is now possible nifty futures to touch 4850 level in coming months. For intraday trading we will be looking for selling nifty on every short covering coming in the markets as long as price action remains below 5257 level ( only on 2 days closing basis). So traders should be look for selling only, We are now bearish for intraday trading as nifty futures has given breakout trading opportunity by trading below 5117 level. Hence it gives us a big reason to take the short positions below the 5117 level for targets as 5018 as first target and 4979 as second target. Also it is advised to place a protective stop loss above the 5150 level as this will invalidate all the bearish trend for intraday positions. But we will have to be very careful as nifty futures has moved sharply down so profit booking is more likely in this markets also one must keep a watch on open interest data, even today nifty futures has added about 22 lakh shares in open interest a jump of about 9 odd percent. Today’s sessions may have large swing moves so traders must stay extremely cautious about their positions. We are expecting some pull back in afternoon session once we move above 5126 level today, high risk traders can even take positions on Nifty 5000 put options near 91 level for short term target of 116 and then 147 level. Traders must exit these positions if nifty futures manages to trade above 5180 level on closing basis. Long term investors can start buying in the large cap stocks on selective basis, this can be good levels to accumulate some good stocks.

At 11:20 AM (IST) Nifty is trading smartly negative by 119 points. Today’s trend is very likely to be bearish as on the long term charts we are on downtrend. We have seen fresh short positions being added in nifty futures open interest near 5111 level in F&O August series. Nifty Futures support resistance is as shown below.

Nifty Futures Levels today:

Resistance: 5117 / 5212
Support: 5007 / 4974

Nifty futures trading for 8 August 2011:

Short sell nifty future below 5115 level for intraday target of 5025 and 4979 levels, we recommend to place Stop loss orders above 5145 level.