Trading Analysis : Nifty Futures For 28 July 2011, Sell below 5555 Target 5480, F&O Expiry Today

Nifty futures has given the downside breakout yesterday and we are now looking for 2 days closing below 5555 level. This may signal for the short term down trend. We see that markets has broken all the major supports and there is no major support un-till 5050 level. Also the intraday resistance is now at 5555 and 5600 levels today. So the downtrend must continue till the next support level is reached, we are expecting heavy selling in the coming sessions. As some large cap stocks are trading lower, like BHEL, ICICIBANK, SBIN, RELIANCE IND. and some major technology stocks like INFOSYSTCH are under pressure today. For intraday we are now looking for only selling opportunities as long as nifty is trading below 5555 level, selling nifty below 5555 level for target of 5470 and 5420 level also placing our stop losses at 5615 level. Technical indicator are still showing bearish sentiment in the market. So the current trend is down ward and taking the advantage of this strong downtrend we will be only looking for selling opportunities as long as nifty futures trades below 5555 level for intraday trading basis. Major support for nifty futures now lies at 5470 level for day trading, while immediate resistance is likely to be at 5555 level. Major part of selling is likely to come from the retail investors and FII as they have been the major sellers in this type of markets. Markets are in downtrend and is likely to witness more selling in the coming session. We also advice to trade cautiously as today is F&O expiry of July series

Nifty futures was trading negative by 57 points At 10:10 AM (IST). Today’s trend is likely to be bearish for today. Also we expect some fresh short positions is likely to build in nifty futures below 5555 level, in F&O August series. Nifty Futures trading range for today may expand as seen below.

Nifty futures trading analysis (28 July 2011): Sell nifty future below 5555 level for intraday target of 5470 and 5420 levels, also place Stop loss above 5610 level.