Nifty futures is trading near its strong resistance level of 5180, we are expecting some major selling in this area, this selling should pull nifty futures down to 5070 level and then 5000 level. So traders should take this resistance level as selling zone, and fresh short positions should be initiated right near 5170 level in nifty futures. This positions can also be taken by going long on Nifty options contracts also, here high risk traders can buy nifty 5100 put options near 49 level with positional targets as 106 and then 128 levels. We should also place the stop loss for this positions just below 34 level else traders can exit this position if nifty futures closes above 5212 level. Risk reward ratio is quite attractive so nifty put options can be bought to take the advantage of the resistance in this down trend. Slow stochastic indicator has given a crossover in 15 minutes chart so our short entries on nifty futures are valid, hence buy nifty 5100 put option. Nifty options open interest data shows that 5100 put option has highest open interest so, this is an extra confirmation for going short. The resistance of 5180 is very strong and we don’t see any positive triggers in market at this point of time and trading in the direction of the long term down trend we should look for selling opportunities till the trend changes. Markets may become volatile in near term as US economy will be taking decision on interest rates.
Free Nifty Options Advice (tips):
Buy Nifty 5100 put options near 49 zone with positional targets as 106 and then 128 level. Place stop loss orders just below 35 level or traders must exit this put option if Nifty futures close above 5212 level.