First a false breakout above 6030 Spot. Next a false breakdown below 5960 spot? As the Breakout above 6030 happened with overbought indicators, we did not believe it, Similarly, today the breakdown happened with oversold indicators. At NiftyPower, we took two short trades today. One near 5965 spot levels, which gave us a profit of 20+ points. The other trade we took was in late afternoon near 5985 levels. This also gave us quick 35+ points. Overall, it was a good trading day for us.
The Options OI data today show an almost equal amount of OI addition at 6000 CE and 6000 PE. 6000 will be the level of tug and war between the Bulls and the Bears. Once the OI at this level is resolved, we will have more conviction in the Breakout or the Breakdown. Till then trade the range of 5960/5930 to 6030/6070.
For tomorrow, once again watch the level of 6010 on the upside and 5960 on the downside. A move above/ below these levels can give quick movement of 25+ points. If Nifty trades in a rangebound manner, then trade this range of 5960 - 6010 with tight stoplosses.
8 Dec: Nifty spot resistance at 5990-6010-6030-6060-6070. Support at 5970-5955-5940-5915-5905-5885 - www.niftypower.com
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