Nifty Futures July Technical Analysis and Target Level for Next Week for 25 July 2011

Indian markets closed strongly above 5600 level, but still we see that markets are in range and this range is likely to be 5560 and 5685 range. So this will be better to wait for the breakout in either direction as the markets were not strong enough to break out of this range. For range traders the support lies at 5560 level and resistance is at 5685 level. So we are again back in the consolidation expecting the breakout in the coming sessions. However our strategy for next week will be to enter long positions only if nifty manages to close above the 5710 level continuously for 2 trading sessions. The targets for long position above 5710 will be 5777 and 5801 levels, also placing a protective stop loss around the 5680 zone. So strong closing above 5710 level will only open the way for 5777 level in the coming week. We don’t expect strong buying coming in the broader markets next week. On the lower side we see a selling below 5545 level only on 2 days continuously closing. Also on downside Nifty has support at 5502 and 5469. So a trader must open positions according to the breakout in this markets.

Our Recommendation: Nifty futures is more likely to bounce to 5777 levels next week. Technically nifty is having strong support at 5605 and 5573 level and resistance at 5777 and 5808.

Sell Nifty Futures below 5555 for weekly target 5503. Stop loss should be placed near 5583 on closing basis.