14 Dec: Nifty View

In our yesterday's Nifty View, we had mentioned that the time to go long was coming. 5800 was the strong support, while 6000 will be a resistance zone for the Nifty. Nifty gave a Golden opportunity to go long in the morning. Once it took support at 5800 after the initial sell-off, we were looking for signs for some strength to come above 5825-5830 spot. When it came, we grabbed it with both hands.

The options OI data still suggest the same thing. 5800 is the strong support, while 6000 is the strong resistance zone. 5900 is still the 50:50 level and it will be resolved tomorrow. There is also some interesting cutting of OI that happened today at 6100 CE strike. Now addition of OI at 6000 CE and reduction at 6100 CE does not make too much sense. We will get more clarity on such actions in the coming days.

For tomorrow, initial resistance for Nifty comes at 5915-5920 spot above which Nifty spot can attempt 5960-5970 kind of levels. We expect some consolidation/ supply to come around 5950-5970 if these levels are reached in the morning session itself. If however, Nifty declines first in the morning session, then 5880/5875 spot can be a good area to try some longs again. Till it stays above 5830 spot now, longs look to be more rewarding.

14 Dec: Nifty spot resistance at 5915-5930-5965-5995. Support at 5880-5860-5830-5820 - www.niftypower.com

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