In yesterday's Nifty View, it was given that "... On the downside, todays low near 6060 is important. If it breaks 6060, it will move down towards 6035-6020/6015 levels..". Nifty broke 6060 in the morning trades and then went on to make a low of 6022.
Nifty has closed in the Red from its opening levels on all days of this week. We expect some bounce to come today OR maximum by Monday. Hence, this is not the time to initiate fresh shorts.Instead, traders are advised to book some profits near 6020 levels and initiate fresh shorts only if Nifty gives a closing below 5980. As indicated in earlier posts as well, the trading range for Nifty for now is 5980 to 6180. Till it is within this band, trade the band and look for big moves only when it closes outside this band.
The Nifty options OI data indicate the Bears gaining upper hand at the 6100 level. 6110/6125 being the breakdown level as of now, this will offer stiff resistance for any upmove now. On the downside, the Bulls have still not given up hope on 6000 levels. It has added OI even on down days like today and yesterday. Hence, 5980 on the downside becomes a good support which the Bears will have to break. 5980 to 6110/6125 is the trading range as evident from the Options data as of now.
For today, intraday traders watch the action near 6060 levels on the upside and 6025 levels on Nifty Spot on the downside. Breakout above/ below these levels can give a minimum 20-30 point move on Nifty spot. However, as we are at the lower end of the trading band, we will not recommend any shorts for today. Traders look for going long near supports, probably near 6035-6025 levels and keep a stoploss below 6000 or 5980 Spot.
7 Jan: Nifty spot resistance at 6060-6075-6095-6120. Support at 6025-6005-5995-5980-5955 - www.niftypower.com
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