21 Dec: Nifty View

In yesterday's Nifty View, 5910 to 5970 was the range given for Nifty spot. Nifty violated on both sides by about 10 points. Looking at the support near the lower part of the trading range in the morning, we were able to spot a very good Long opportunity for a good gain of 50+ points. As it turned out, Nifty did all our targets and then finished almost at the same level where it had closed Yesterday.

The Options OI data suggests some sort of support building for the Nifty at 5900. However, the strong OI build up at the 6000 CE strike still suggests that it will be a big mountain to climb for the Bulls. This along with the large difference in OI of 6100 CE and 6100 PE levels (6100 PE being very less compared to 6100 CE), suggests that even if we go above 6000, the Bulls are not very hopeful of Nifty expiring above 6100 at this stage. 5800 - 6000 is still the range that is indicated by the Options OI data and unless one of these levels is crossed convincingly, traders can very well trade this range for decent profits, whenever they get an opportunity.

For tomorrow, 5940 spot is the immediate support for Nifty, below which, it can quickly slide down till 5920-5910 levels. Lower level supports exist at 5880 and 5855 Spot. On the upside, 5970-5980 would offer initial resistance, above which the Bulls will again attempt 6000-6030-6060 levels. Watch the action closely near these levels and trade with tight stoplosses for good gains in Intraday Trade.

21 Dec: Nifty spot resistance at 5975-6005-6030-6055. Support at 5940-5920-5910-5880-5855 - www.niftypower.com

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