26 Nov: nifty View

It was a sellers expiry yesterday. A two way movement with volatile moves till the last hour. Expiries are always Risky to trade. If you wanted to experience that, one should have watched the price movement in Options of November Expiry. Till 3:00 PM, it looked as if Nifty spot had respected the previous bottom made at 5825 and formed a double bottom. It bounced around 40 points, twice from that level (reason for us not taking that short call marked in the chart). However, when it broke it, there was no looking back.

Today, being the first day of the expiry, would confirm whether yesterday's move was a blip Or is it here to stay. We are at the end of the week and the Month end is also nearing. If Nifty is unable to recover some of its losses by the end of this month, it would generate a "Sell" on the monthly time frame. Last time this happened, we had a reversal. Will it repeat this time too?

For today, watch the levels of 5790 and then 5760/5750 on the downside. These have to be protected for any kind of bounceback materialize. On the upside, 5825-5830 and 5850 will be the initial resistances, above which some short covering can take Nifty to test 5880 - 5905 levels again. Trade these ranges now till we get a breakout on the Upside. I don't recommend any fresh shorts right now. For those who are already in short, hold on till we get a reversal (above 5960?).

26 Nov: nifty spot resistance at 5830-5850-5880-5895. Support at 5790-5760-5750-5735 - www.niftypower.com