13 Jan: Nifty View

What a comeback! These are extraordinary times for our market. The Nifty range of more than a 100 points is almost an everyday event nowadays. After the straight line fall, Nifty made a smart recovery today and how! After the bad IIP numbers, the Bears would have had some hope of breaking the formidable 5700 today. They almost succeeded in doing so. Well, Almost. Cause the Bulls decided to spoil the Bear Party and took Nifty up by nearly 150 points from the lows of the day.

Tomorrow will be a very crucial day for deciding the short term trend. Nifty is definitely not out of the woods yet, and if we do not see a follow up move tomorrow, then this bounce will be considered a technical bounce only. The Options OI data is on expected lines. The Bulls added Puts at 5700 PE and 5600 PE, while the Bears were forced to cover Calls at 5800 CE and 5900 CE. 5900 is the level, which the Bulls will be hopeful of conquering tomorrow. From the Options table, it is a 50:50 level as of now. The range for Nifty seems to be 5700 to 6000/ 6100 for the month of January.

For tomorrow, Intraday traders watch the level of 5900 on Nifty spot. Some aggressive shorts can be built near these levels with stoploss placed just above 5900 spot. Do not stay short above 5900 Spot. Above 5900, Nifty spot can target 5925-5950 and 5980 levels, where again some sellers are expected to show up. On the downside, support for the Nifty should come near 5825/5820 levels. Below these, Nifty may again show downward momentum towards 5790-5750 levels.

13 Jan: Nifty spot resistance at 5885-5900-5925-5945-5980. Support at 5825-5790-5760-5740 - www.niftypower.com

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