31st May: Crucial Support 4870 for Nifty Futures

• Nifty Futures closed at 4930 which is 52 points lower than its previous close of 4982.
• Nifty Futures opened with downward price gap of 31 points at 4950 and continued the downtrend to form intraday low of 4926.
• The 62% retracement of the previous rally (from 4782 to 5011) and crucial support is placed at 4870 below which bearish trend will be established on short term basis.
• A strict stop loss of 4870 is recommended for long trading positions as sharp sell off may be seen below this level.
• If Nifty Futures trades below 4870, then it is likely to test its earlier bottom of 4780 in next 3 to 4 trading sessions.
• Nifty Futures needs to surpass and maintain above 5000 mark for keeping the upward momentum intact.
• Timing cycle day is showing 5th - 6th June for indicating the trend direction or trend reversal.
• The intermediate trend of Nifty Futures is in downward direction and reversal will be confirmed above 5300 levels on closing basis.
• The intraday resistance levels for Nifty Futures are placed at 4950 & 4980 and support levels are placed at 4910 & 4870 respectively.