5 Jan: Nifty View

In Yesterday's Nifty View, it was given that "..below 6145/6150, Nifty will slide towards 6125-6105 levels...". Well, Nifty opened near 6175-6180 levels, took minor support at 6145/6150 and then broke it to make a low of 6124.4. Then it stages a fine recovery, conquering 6145/6150 to make a high of 6177 before finally settling at 6140 levels again. At NiftyPower, we went long near 6145 levels to book a gain of 30+ points in Nifty Futures and 14+ points in Nifty Options.

The Nifty Options OI data for today show some nervousness among the Bulls who covered some of the shorts built at 6100 PE and 6000 PE strikes. On the other hand, the Bears added OI at 6200 CE and 6300 CE strikes. The Options data suggest 6200 to be the resistance for now and 6000 to be the support. 6100 is the level at which the battle will be fought between the Bulls and the Bears for now.

For tomorrow, todays low of 6125 on Nifty Spot becomes important if Nifty has to resume its uptrend. Intraday traders can go long with stoploss at 6125/6120 spot after the initial 1-2 hrs. of trading. However, if Nifty spot breaks this level anytime during the day, it will correct further towards 6105-6070 and below levels. The stoploss for the shorts below 6125 should be placed above 6150 spot. We would prefer to watch the action for the initial 1-2 hrs. of trading before taking a position tomorrow, as it might be a short term trend deciding day.

5 Jan: Nifty spot resistance at 6145-6175-6200-6220. Support at 6125-6105-6085-6070 - www.niftypower.com

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