In our last Nifty View, we had mentioned the resistance at 6030 and support at 5935-5920 Spot. Nifty opened right at our breakout level and soon conquered it for good upside in the first half. However, we did not believe in the breakout from morning itself (due to the Overbought Indicators), and instead went short at around 6045 spot levels. What a Mistake! In Intraday trading, timing is everything. We made the mistake of going short a bit early while the actual Sell was generated about 2 hrs. later at the very same levels! Nifty just took our Stoploss in the first Short and then fell more than 60+ points. As a policy, we do not take a second call once the stoploss is hit in the first call. Hence, it was a Loss making day for our Subscribers.
For all those who went Long Positionally above 6030 Spot, 5960 should be a decent level of stoploss. Below 5960,Nifty may lose some more points and fall towards 5930-5900 levels. Till the time it is closing above 5930, trend should be considered to be Up only.
The Options OI data indicate more than 10 lacs+ addition at 6000 PE and 6100 PE and more than 8.5 lacs+ addition in 6000 CE and 6100 CE. The OI at 5900 CE and 5900 PE hardly changed. The OI data suggests range of 5900 to 6000 for the Nifty presently. What is surprising though, is the addition of more than 5 lacs+ OI at 6100 PE even on a down day like this. Once the writers of either CE or PE at 6000 & 6100 start to cover, we will see a trending market once again. Till then, trade the range.
For tomorrow, watch the action near 5960 spot and 6010-6015 spot. One can go short below 5960 for an intraday target of 5930-5900 and more. Above 6010 spot, Nifty will again try to test 6030 and then 6065 Spot and more. If manages to trade above 6065/ 6070, we may see some Panic Short covering from the Bears.
7 Dec: Nifty spot resistance at 6010-6030-6070-6120. Support at 5990-5960-5925-5900 - www.niftypower.com
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