Nifty future is trading in 5700 – 5950 range for last 22 sessions, suggesting the consolidation, as consolidation cannot be ruled out for a longer period of time, we see the breakout in either side of the current range. Also keeping interest rate in decision by RBI today in mind, we will however advice traders to stay cautious. At CMP we will however remain bullish as long as nifty is trading above 5705 level (on closing basis). Technical indicators are showing negative momentum from current levels, but we are confident that the recovery is likely possible. We will advice traders to remain long in nifty in today’s market, until nifty futures trades below 5691 level. For intraday trading we recommend to take long position only above 5705 level for target of 5758 and 5792 levels and place stop loss at 5691 level. Intraday traders stay cautious as near term volatility may increase significantly due to RBI rate decision today.
At 10:35 AM (IST) Nifty is trading absolutely flat ie -2 points. Today’s trend will be bullish, However fresh long positions are likely to be added near 5700 levels, also short covering is likely to support the markets at lower level. Nifty Future trading range can be seen, as in the support resistance levels below.
Nifty Futures Level:
Resistance: 5760 / 5796
Support: 5702 / 5688
Nifty futures trading tips (3 May 2011): Buy Nifty Future above 5705 level for intraday target of 5758 and 5792 levels, also place Stop loss below 5691 level.