Nifty Future:

Buying could be avoided for timebeing, till clarity of trend emerges from top two leaders of market – Reliance Industries and State Bank of India. Both have huge bearing on Index movement.  Till such time, keep utilising the Shorting opportunity in Index.

Look at the chart of Nifty Future given below. Not a smooth sailing on upside as there are series of resistance levels at 4950 – 4965 – 4980 – 4990 – 4995 which are to be conquered. The resistances are either straight Fibonacci Resistance levels or midpoints between two levels.

Any upmove will be a labouredone as Nifty has broken the Inside Bar low, coupled with Fibonacci levels will keep resisting at everyrise. The 200 DMA is also placed at 4994. The trend could change on upside if it closes above 5012 and Inside Bar high of 5020 is also takenout.

Stock Future:

Buy Reliance around 993 with SL at 988. TGT  1010 – 1020 – 1035

Buy Tata Steel at 503 with SL at 498. TGT 520 – 525

Best wishes

Happy Trading

C T Ramesh Raja