8 Jan - Nifty View

On Monday, Nifty opened up, and after trading rangebound for most part of the day, declined to close near the lowest level of the day at 5980 level. 5980 was also the gap support level for Nifty spot, which, it had been able to defend last week. Sustaining below this level will be the first sign of weakness. Aggressive traders can close their Long positions and go short below 5980 on closing basis, with a tight stoploss above 6020 closing on Nifty Spot. Confirmation of this short trade will come only when Nifty spot closes below 5940 Spot level. Hence, conservative traders can skip this aggressive trade and wait for a confirmed signal.

The Nifty Option OI Charts are given below:    

On the Nifty Options front, it was a nothing kind of day, with the Bulls not doing much and the Bears also adding a very small quantity of 11 lacs+ in Nifty Options of 6100 CE to 6300 CE strike. Overall, 600 is the 50:50 level between the Bulls and the Bears. 6200 is the biggest resistance, with open interest at Nifty Options of 6200 CE already crossing 80 lacs. 5900 and below are the supports as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5995/600 level. As long as Nifty stays below this level, the intraday trend should be considered negative and Short trades should be preferred. Above this zone, Nifty will again head for its higher level resistances of 6020/6050 and 6075. On the downside, support for Nifty Spot now comes at 5980 level. This is the gap support level, and below this level, Nifty will slide to close the gap towards 5960 and 5940 levels. If it closes below 5940, it will considered a failed breakout.

8 Jan - Nifty Spot resistance at 5995-6020-6050-6075. Support at 5980-5960-5945-5930 - www.niftypower.com

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