After some short covering Nifty futures is still resuming its downtrend targeting towards 5400 levels on Monday. 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 bearish outlook for today, so short nifty below 5500 for intraday target of 5400 and 5378 level placing stop loss at 5516. Only a 2 days closing above 5500 will change our outlook from bearish to consolidation.
Nifty Futures Level:
Resistance: 5500 / 5527
Support: 5400 / 5374
Nifty futures trading tips (21 February 2011): Sell Nifty Future below 5500 level for intraday target of 5400 and 5378 levels, also place Stop loss above 5516 level.