Nifty closed today up 17 odd points. It seems that bulls are having a field day and there is relentless buying with no topping over in sight. But stop!. Before we conclude any such thing, I have a different take of the situation. Its a set-up for a Bull Trap. Not in the classical sense but the final effect is going to be the same. The newly converted Bulls are going to be trapped thinking that there is plenty of steam still left in the market to make profit on the upside. But just the opposite is going to happen latest by coming Tuesday i.e. 21st May. By the way, selling in Nifty could also begin on Monday in the later half of the trading session. If we look closely at daily chart of Nifty, we find 'Hanging Man' candlestick created in today's trading.
So on Monday (20 May 2013) as markets open, we should sell Nifty June Futures. I am recommending June Futures because we should get better momentum on the downside with June series. On Monday I expect a gap to be created on opening. Whether it is gap down or gap up, we should sell Nifty June Futures. This means that your sell could be anywhere in the range of 6180 and 6230. First Target for your sell will be 6000 and 2nd Target will be 5900.
If you have any queries then do ask through the comments section.You can also write your thoughts and suggestions for improvements. Share your thoughts and we will all be that much more informed. All the best for trading on Monday!
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