Nifty Views for 9 Feb, 2009

After having traded the entire week in a very tight range with increased volatility, Nifty looks to give a decisive breakout this week.

Global cues are positive and Nifty is poised for a positive opening on Monday if Asian indices support. It will face resistance right at opening levels and it will be interesting to see if it can stay above resistance levels of 2875-2880. If it does, expect an upmove till 2920-2940 levels on Monday/ Tuesday itself.

On the downside, Nifty finds support at 2825-2800 levels. If this level breaks, there can be fresh shorts build up till 2750 levels.

For Monday, watch from the sidelines for the first half hour to see if Nifty is able to sustain above 2880. If it does, one can go long with stoploss at 2860. If it fails to sustain above 2860, one can short with stop loss of 2880 and targets of 2825, 2800. Be quick to book profits if going short as the bounceback from support levels can be quick.

If Nifty closes above 2880 on Monday, one can hold long positions for further gain.

For 9 Feb, 2009, Nifty resistance at 2870-2895-2920-2945. Support at 2850-2825-2805-2785