Nifty futures has been trading lower for last 9 sessions and today we have seen some profit booking in the form of short covering, due to lower crude oil prices. However we will advice traders to build short position on every up move. We are going to see more selling from the current levels which will pull the markets towards the 5200 level of past. So the current trend is down ward and taking the advantage of this downtrend we will be only looking for selling opportunities as long as nifty futures trades below 5655 level on closing basis. For intraday trading we will advice traders to sell nifty below 5539 level for intraday target of 5509 and 5469 level, also stop loss for this trade must be placed above 5555 level. The major selling is likely from the FII as they have selling continuously for last 6 sessions. Markets are in downtrend and is likely to witness more selling in today’s session.
At 11:15 AM (IST) Nifty is trading positive by 55 points. Today’s trend will be mixed to bearish, However fresh short positions are likely to be added near 5569 levels in open interest. Nifty Future trading range can be seen, as in the support resistance levels below.
Nifty Futures Level:
Resistance: 5539 / 5567
Support: 5505 / 5465
Nifty futures trading tips (6 May 2011): Sell Nifty Future below 5539 level for intraday target of 5509 and 5469 levels, also place Stop loss above 5555 level.