Markets failed to close above the comfort zone of 5555. This failure has already resulted in intense selling in the broader markets, Also the interest rate hike and the Japanese earthquake crisis fueled index to close lower, which brought Nifty below 5400 level last Friday. However, closing below 5400 in March 2011, continuing its down trend. Also on downside Nifty has potential to approach 5200 and close below that level will bring panic selling towards 5088. So a trader has to be disciplined as well as stay extremely cautious at these levels.
When we talk about nifty futures we are more likely to break down to 5200 levels next week. Technically nifty is having strong resistance at 5450 and 5555 level. Support at 5202 and 5084.
Our trading strategy for next week 21 March 2011 : Sell nifty below 5400 level for weekly target 5200. Also place stop loss near 5430 on closing basis.
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