Last two weeks for Nifty futures were good as it peaked at 5400 level, but as we know that markets are still in downtrend so we have seen selling coming at higher levels. Today Nifty futures approached its strong support of 5170 (earlier strong resistance) level. So we are of the view that bounce must be ahead and some small consolidation in today’s session must be seen, so traders can take and hold long positions on Nifty futures near 5170 for next week targets as 5230 and then 5290 level, stop loss for this positions must be placed just below 5140 level as it will invalidate our bullish setup. This is high risk trade as we are trading in the opposite direction of major trend. Near term top is at 5400 and bottom is at 5000 level because this strike options has the highest open interest. Also on thing to notice is 5200 put option has second highest open interest so it is more likely that nifty will take support at 5170 level and bounce must follow after that. We have also seen most of the front line heavyweight stocks are trading near to their near term support, therefore these stocks will support the market. Stocks that are trading near support level are Reliance Ind, State Bank of India, M&M, Tata Motors, ICICI Bank and TCS. High risk traders can even buy Nifty 5200 Call options in between 74 to 79 for short term (positional) targets as 125 and 145 level, stop loss orders for this trade should be placed around 55 zone. Risk reward ratio is attracting us to leverage this trade. Technically, Nifty futures has broke above its resistance of 5170 and so its our new support level. Now you can learn this kind of Technical Analysis and make good profits.
Nifty futures trading for Short term: Buy Nifty futures November contract at 5170 level for targets as 5230 and then 5290 level, we recommend to place stop loss just under 5140 level. Nifty options trading strategy will be to buy nifty 5200 call near 79 for target levels as 125 and 145. stop loss at 55 level.