27 Dec: Nifty View

In our last Nifty View, the downside supports were mentioned as 5970, 5955 and 5935 while the upside resistances were 5995-6005 and 6030. Nifty opened near our support of 5935 (5941), went up till 5975 near to our breakdown point of 5970, came back and tested our support of 5955 and then made a smart recovery to end near day's highs at 6014.

The Options OI data show the Bears covering calls from 5800 to 6100 strikes, the most being at 6000 strike. The Bulls also added OI in Puts of 6000 and 6100 strikes. The Bulls have now built strong support at 5900 and 5800 levels and are working hard at the 6000 level. This is a 50:50 levels as of now. 6000 can act as pivotal to Nifty's movement for the earlier part of next week. However, do remember that next week is Expiry week. Any addition in OI from now on can be termed as speculative Selling/ Buying of Options at Best. Hence, we would take today's Option OI data as that for the entire next week and give more importance to other indicators from now on. Thus, the Options data indicate an expiry very near to 6000 levels with the expiry range being 5900 to 6100.

For tomorrow, watch the action near -6035 Nifty spot for further upside moves towards 6060-6080 and higher. On the downside, look out for support near 6000-5995 Nifty spot. If these levels break, Nifty may slide further towards 5970-5955 levels. Once again, do remember that Puts at 5900 and 6000 strikes have been added very recently and these guys would panic first in case of any downmove. Hence, Positional Longs should have strict stoplosses at 5955-5935 Nifty Spot for Now. Till Nifty is trading above 5935 Spot, trend should be considered to be Up Only.

27 Dec: Nifty spot resistance at 6020-6035-6065-6080. Support at 5995-5970-5955-5935 - www.niftypower.com

Intraday Nifty Options