28 Dec: Nifty View

In Yesterday's Nifty View, it was given to watch the action at 6035 Spot for upside moves and Support at 5995 Spot for downside moves. Once Nifty opened and moved above 6035 in morning trades, it was struggling to stay above 6035 with overbought indicators. We sensed the move and went short at that level for a cool gain of 50+ points. Nifty spot went till our Support of 5995 and would have given some points to anyone who went long at those levels also.

The Options OI data is normal near to expiry with covering at almost all the strikes, except for 6100 CE. As said yesterday also, do not read much into Options data in the last week of expiry. However addition of OI at any strike level so near to expiry would not make sense as the Risk:Reward ratio would be heavily against the writers. Hence, the addition of OI at 6100 CE does seem strange. Will Nifty try to move near 6100 by expiry? We will know in a couple of days.

For tomorrow, watch the action near 6010-6015 on Nifty spot. If it manages to stay above it in initial trades, it will again try to test higher levels of 6035-6050-6060. On the downside, support comes at 5990 and then 5970/5965 levels. Below 5970/5965, Nifty spot will try to test lower level of 5940. break of 5940 spot would create real panic in market.

28 Dec: Nifty spot resistance at 6015-6030-6045-6065. Support at 5990-5965-5940-5905 - www.niftypower.com

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