Nifty futures is trading higher about 13 points, at 10:50 AM today. But the price action is suggesting some profit booking is likely in this market scenario as price action is below the 50% retracement, which is acting as the strong resistance level and we see that it will be difficult for the market to break above that level in near term. So we will be looking for selling near the 5679 level for target of 5603 and 5572 levels, we also recommend to place the stop just above the 5701 level. We are sure that nifty futures will find the resistance at these (5679) level. But on the daily chart we saw nifty was in up trend. So this is very good opportunity, High risk traders can accumulate the 5600 put options at current level and can hold it for 2 to 3 days for target of 88 and 97. Also book loss in this put option if nifty closes above 5700 level for 2 days. Our short term strategy will be to look for selling at every rise, and book partial profit near the previous lows, Investors can start buying in the front line stocks / large cap stocks we are sure that this consolidation will be followed by the positive break out.
At 10:50 AM (IST) Nifty is trading positive by 13 points. Today’s trend will be down, we may see some profit booking for the 6 days rally. Also some fresh long positions is likely to build near 5602 levels. Nifty Future trading range will be as shown in the support resistance levels below.
Nifty Futures Levels for 4 July 2011:
Resistance: 5683 / 5706
Support: 5601 / 5569
Nifty futures trading tips (4 July 2011): Sell nifty future below 5679 level for intraday target of 5603 and 5573 levels, also place Stop loss above 5701 level.
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