After some short covering Nifty futures extended towards 5490 levels on Wednesday. Markets are still mixed to bearish and will see consolidation before any upmove, however a strong resistance do exists at 5500 level which is still acting as potential downtrend, as FII are continuing their selling mood in this market. The markets are likely to witness more selling pressure as long as nifty is trading below 5500 level. I will be looking for selling opportunities as as long as nifty futures is trading below 5500 level on intraday basis. Keeping mixed to bearish outlook for today, so short nifty below 5500 for intraday target of 5454 and 5413 level placing stop loss at 5517. However bears may bring nifty towards 5413 level due to fresh selling near 5485 levels, so stay cautious at these levels with overall bias still bearish in near term. Only a 2 days closing above 5500 will change our outlook from bearish to consolidation.
At 09:55 AM (IST) Nifty is trading negative. But still trading below strong resistance of 5485 level, Today’s trend will be mixed with negative bias, However new short positions will be added at these levels. Nifty Future trading range can widen due to volatility, as in the support resistance levels.
Nifty Futures Level:
Resistance: 5485 / 5512
Support: 5454 / 5411
Nifty futures trading tips (17 February 2011): Sell Nifty Future below 5500 level for intraday target of 5454 and 5413 levels, also place Stop loss above 5517 level.