Nifty made a smart recovery on Friday, to keep the hopes of the Bulls alive. Now when the world is turning Bearish, I would like to bring the attention of the readers to our post of 8 November. You can read it by clicking here. The world was highly Bullish on that day, when we were turning Bearish. Now when the world is turning Bearish, We would like to remind you of another post written sometime in October. That post read, "...We have been advising against positional longs from the beginning of the week. The time for going long will definitely come. Grab it with both hands when it does and do not miss out due to fear...".
Well... is it the time to go long?? Not Yet. Nifty has to show strength in this upmove . The levels to watchout for on the upside are 5850, 5900 and 5930 spot.Only a close above 5930 would make positional longs Safe for now. This would also mean that 5690 has been saved by the Bulls, a higher Low has been formed keeping the uptrend intact. Hence, watch these levels with lot of interest. If Nifty sustains above these levels, then we would definitely advise Positional longs with a proper stoploss.
The Options OI of Friday show more than 8 lacs OI addition at 5800 PE levels and not much additions at 5800 CE. This level would be a good support in the coming days. 5900 is still an undecided level while 6000 is strong resistance. Nifty movement at the start of next week would give more clarity on who takes over the level of 5900.
For tomorrow, watch the levels of 5875/5880 on the upside and 5820/5825 on the downside for first signs of strength or weakness. Above 5880, Nifty will try to test 5900-5930 on the upside. Above 5930, we wills see some panic short covering from the Bears. on the downside, break below 5820 spot would again invite some selling from the Bears and we can see a revisit of 5800-5750 type of levels .
13 Dec: Nifty spot resistance at 5880-5895-5930-5970-5995. Support at 5850-5820-5800-5775-5750 - www.niftypower.com
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