Nifty futures was trading lower for last 6 sessions due to negative news of inflation and fear of interest rate hike in near term by RBI. But yesterday nifty finally taking its support at key level of 5700, finally closing above 5800 mark yesterday. So we can conclude that a consolidation period will continue for few session before a bounce back to 5900 levels. So as long as nifty is trading above 5744 level we see limited downside with upside potential target of 5950 level. So we would we look for buying opportunities in nifty for target of 5950 in shot term (4 to 6 sessions).
Currently nifty is trading exactly flat ahead of IIP data release today, but still holding strongly above 5744 support level, The short term trend will be consolidation with large volatile moves. Nifty Future trading range can widen, as seen in the support resistance levels.
Nifty Futures Level:
Resistance: 5851 / 5885
Support: 5744 / 5714
Nifty futures trading tips (12 January 2011): Buy Nifty Future only above 5817 level for intraday target of 5848 and 5881 levels, also place Stop loss at 5802 level.