Nifty future is now in consolidation before any breakout, we are however bearish as long as nifty is trading below 5744 level. Downside risk is now limited and is upto 5615 level. If nifty is able to sustain above 5744 level for 2 days then we will see a short covering rally towards 5850 level. For intraday trading we recommend to look for buying opportunity near 5615 level for intraday targets of 5682 and 5744 levels. A stop loss must be placed below 5598 level. So we are in a market that has limited downside from here and potential upside is 5850 in near term. Nifty futures support resistance level is as below:
Nifty Futures Level:
Resistance: 5694 / 5741
Support: 5617 / 5598
Nifty futures trading analysis for 20 January 2011 : Buy Nifty Future near 5620 level for intraday target of 5682 and 5742 levels, also place stop loss orders below 5601 level.