The Nifty futures opened with some positive bias at 4946 on Thursday and traded lower in the initial hour to reach the Wednesday's closing value. Later, it tried to test the 200 DMA and reached the high of 4977. However, it sold off again to reach a low of 4915 which also coincides with the 50 WMA. The futures closed at 4948 with some gains.
The important point now is that it has closed below the 200 DMA for two consecutive days and the test of the 200 DMA has failed. Now it is set for another sell off. The next support for the futures are at the 4675-4700 levels which coincides with the February 2010 lows and the August 2009 highs.
IMMEDIATE RESISTANCE AT 5000 AND IMMEDIATE SUPPORT AT 4750.
Those who are in short from 4950/5100 level may now book 50% profit of their holding around 4825-4830 and remaining with stoploss of 4950 for target of 4760 within expiry.
THOUGH INTRADAY TRADING IS VERY RISKY BUT STILL SHORTING IS THE BEST POLICY FOR TODAY'S MARKET WITH TARGET OF 4825-4830.
Disclaimer:: I have no position as on today. I may trade on intraday basis. Therefore, it may be assumed that I have vested interest on the abovementioned posting.
