9 Dec: Nifty View

The chart above tells the complete story of Yesterday. Nifty opened below our reference level of 5960 spot, moved below Our lower support at 5930 Spot, Took resistance multiple times at 5930 to finally breakdown and have a visit below our last support of 5885 (actual low of 5878). From there, we got a bounce of around 30+ points. For anyone, who follows only the charts and not his emotions, yesterday should have been an easy day of trade.

Now once again, the previous supports of 5930 and 5960 spot will act as resistances for the Nifty. Nifty should give a minimum close above 5960to be back into the range of 5930 - 6070. Till then, it is a sell on rises market.

The Options OI also indicate big amount of OI addition at 6000 CE and 5900 CE levels. While OI of 6000 PE and 5900 PE was reduced by a decent amount yesterday. The Options data suggest some more pain left for the Bulls. They will have to give a minimum close above 5960 to scare away the 5900 CE ariters first. Any close above 6000 now will lead to panic covering from these writers. However, that is just wishful thinking at this stage.

For today, watch the resistance at 5915 spot and then 5930 Spot. If Nifty manages to trade above 5930, it will again try to target 5950/ 5960 levels where again it will see some selling pressure. On the lower side, minor support exists at 5880/5885 spot. Below this,we will see 5860/5850/5820 kind of levels. 5800 is still a strong support according to Options data and that would be a good buying zone if at all Nifty goes near 5800-5825 zone.

9 Dec: Nifty spot resistance at 5915-5930-5950-5960-5985. Support at 5900-5885-5860-5850-5820 - www.niftypower.com