Nifty could be rangebound with negative bias. Sell at highs or sell at key indicators will be the daily trade
Calls:
- Sell Nifty futures if Nifty falls below 11900 for a target of 11850 stop loss of 11920.
- Option calls can be risky since expiry is near – However, if Nifty falls below 11900, there can be a good chance to grab about 10 to 15 points from the Nifty 11900 PE.
- Buy Nifty futures if Nifty rises above 11965 for a target of 12000.
- option calls for 12000 can be very risky – if Nifty crosses 12000 then can buy 8 points from Nifty 12000 CE.
Create Stop Loss orders to ensure that you trigger #1 and #3.
Key Indicators:
Global Markets – Dow Jones has fallen 0.93%, European markets that opened up a few points could not sustain the upward momentum and have been rangbound with a negative bias.
Domestic : The runup to the elections have been factored in and there may be some profit booking before the expiry date on Thursday.
Nifty
On the daily charts Nifty has crossed a key resistance of 11900 and has been able to support that level. However, any attempt to go down will be a great time to short till 11835.
Conversely, from the charts, if the prices start moving northward, then the next stop is at 12000, or even 12024, which is the next resistance from a pivot calculation level. You can take a buy call only if there is a gap up opening in the early trades. Also, if Asian markets are showing buy signs.
IntraDay (5 min, 15 min and hourly chars)
Hourly Charts: The 60 minute timeframe shows Nifty consolidating at around the 11850 to 11900. The prices have been taking support of the 9 period EMA and not falling below the 14 period EMA. There are two views we can take here
A fall below the 14 EMA will result in a sharp sell.
A rise above 11965 (which was the highest for 28th May), will result in the prices reach 12000 levels. Hence
5 Min charts
The 5 min charts show that the Nifty has been struggling the whole day of 28th and it is only towards the end, perhaps after machines closed the positions that the prices went up. This could be a temporary price increase and we may see the price fall slightly low.
Warning: Dealing with Futures and Options is considered highly risky and there is all possibility of losing the entire capital in a single day. The recommendations provided here are only for those who understand the risks of F&O. You must undergo a risk profiling before taking positions in F&O. Proper risk management – ie stop losses and money management is more important than just technical analysis.
All charts are screenshots from Zerodha, which is one of the best discount brokerage firms! Awesome tools in it.
Smrutirekha Bhoi