Nifty futures again didn’t manage to close above its strong resistance level of 5569. So we saw this selling pressure continuing and taking nifty futures to the lower levels of 5400. The mood of market participants is looking bearish especially the FII, as they have been selling continuously in equities. For intraday traders we will advice them to enter short positions only below 5405 level for target of 5377 and then 5338 levels. Also recommend traders to place their stop loss above 5455 levels. Also on every up move we are expecting some fresh selling in this index. Technical indicators are in favor of short positions for intraday trading. Traders who has bought the nifty 5400 puts yesterday can hold them for their second target of 83 level, and trailing stop loss to 60 level.
At 09:50 AM (IST) Nifty is trading negative by 25 points. Today’s trend will be mixed to bearish, however we may see some fresh short position build up below 5405 levels today. Nifty Future trading range will be as seen in the support resistance levels below.
Nifty Futures Levels for 16 June 2011:
Resistance: 5455 / 5496
Support: 5375 / 5335
Nifty futures trading tips (16 June 2011): Sell nifty future below 5405 level for intraday target of 5377 and 5338 levels, also place Stop loss above 5455 level.