5 Jan: Nifty View

In Yesterday's Nifty View, it was given that "..below 6145/6150, Nifty will slide towards 6125-6105 levels...". Well, Nifty opened near 6175-6180 levels, took minor support at 6145/6150 and then broke it to make a low of 6124.4. Then it stages a fine recovery, conquering 6145/6150 to make a high of 6177 before finally settling at 6140 levels again. At NiftyPower, we went long near 6145 levels to book a gain of 30+ points in Nifty Futures and 14+ points in Nifty Options.

The Nifty Options OI data for today show some nervousness among the Bulls who covered some of the shorts built at 6100 PE and 6000 PE strikes. On the other hand, the Bears added OI at 6200 CE and 6300 CE strikes. The Options data suggest 6200 to be the resistance for now and 6000 to be the support. 6100 is the level at which the battle will be fought between the Bulls and the Bears for now.

For tomorrow, todays low of 6125 on Nifty Spot becomes important if Nifty has to resume its uptrend. Intraday traders can go long with stoploss at 6125/6120 spot after the initial 1-2 hrs. of trading. However, if Nifty spot breaks this level anytime during the day, it will correct further towards 6105-6070 and below levels. The stoploss for the shorts below 6125 should be placed above 6150 spot. We would prefer to watch the action for the initial 1-2 hrs. of trading before taking a position tomorrow, as it might be a short term trend deciding day.

5 Jan: Nifty spot resistance at 6145-6175-6200-6220. Support at 6125-6105-6085-6070 - www.niftypower.com

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4 Jan: NiftyView

Nifty starts the New Year with a Bang! It gapped up above its resistance zone of 6145-6150 and then took support exactly within this zone on intraday corrections. These levels will be crucial if Nifty has to make new highs again. Forget them for now, But if and when Nifty conquers the 6200 level, these levels will be important in case of corrections.

The options OI data show the restlessness of the Bulls to quickly take this market up. They have already piled up big OI in excess of 50 lacs+ at Puts of 5800, 5900 and 6000 levels. 6100 PE and 6200 PE is also quickly catching up with additions of 5 lacs+ and 9 lacs+ at these two strikes today itself. On the other hand, the Bears seems to be taking it slow. The only immediate strikes where they are showing some conviction are 6200 CE and 6300 CE. As of now, 6200 and 6300 seems to be the resistances while 6100 and below seem to be the support zone for the Nifty. The coming days will give more clarity on the intentions of the writers.

For tomorrow, immediate resistance for Nifty Spot comes at 6165/6170 levels above which, it should target 6190-6210 levels. On the downside, support comes in at 6145/6150 levels below which, Nifty will slide towards 6125-6105 levels. Considering that Nifty is still hovering in overbought zones, we would be more comfortable in going Long if Nifty gives a Dip towards the Support levels. Whether that Dip comes by breaking the immediate Support levels mentioned above or by first reaching the immediate resistance zone mentioned above and then falling, is what we will watch out for tomorrow.

4 Jan: Nifty spot resistance at 6165-6175-6195-6210. Support at 6140-6125-6105-6070 - www.niftypower.com

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Wish You and Your Dear Ones a Very Happy 2011