The Nifty futures opened lower at 5018 tested the 200 DMA at 4975. The futures even traded to a low of 5062 and thereafter, it rallied in step with the European markets which opened with some mild losses and traded to the positive territory.
The Nifty futures have tested both the 50 DMA (presently placed at the 5215- 5220 levels) and the 200 DMA (presently placed at the 4975–4980 levels) twice during the past seven trading days. The futures have reversed from these major moving averages twice too. The major question now is: Is the market becoming a range bound one ? It seems that the Nifty future is moving on the basis of international cues mostly, especially the cues from Europe and the US. As the direction of the markets is unclear now, traders may check whether the Nifty future is able to cross the 100 DMA at 5120 convincingly on any rallies. In case the Nifty future is unable to cross the 100 DMA, it may breach the 200 DMA again. Then the next support for the future, below the 200 DMA, may be at the 50 week moving average (WMA) at 4910.
FOR INTRADAY:: EXPECTED RANGE 4950-5102 (SPOT)
SUPPORTS .. ...5022/4977/4950
RESISTANCE .5088/5102
BUY NIFTY FUTURE ABOVE 5076 WITH STRICT STOPLOSS 5062 FOR A TARGET OF 5100
BUY NIFTY FUTURE AROUND 4964 WITH STRICT STOPLOSS 4948 FOR A TARGET OF 5022 AND 5049
SELL NIFTY FUTURE BELOW 5061 WITH STRICT STOPLOSS 5077 FOR A TARGET OF 5024 AND 4999
FOR NIFTY OPTIONS, PLAY ACCORDINGLY BETWEEN 5100CE AND 5000PE AS PER VOLATILITY AND NIFTY SPOT/FUTURE
TODAY ALSO LOOK FOR IFCI 52.50 CA AROUND 0.85/0.80 WITH STRICT STOPLOSS 0.55 FOR A TARGET OF 1.40-1.50 (SAME CALL WAS FOR YESTERDAY AND LOW WAS 0.85 AND HIGH WAS 1.50; TARGET ACHIEVED.)
DISCLAIMER:: BEING AN INTRADAY TRADER, I HAVE NO LONG POSITION. INTRADAY TRADING IS VERY RISKY. TRADERS/INVESTORS ARE ADVISED TO TRADE AS PER THEIR RISK TAKING APETITE.
