7 Feb - Nifty View

On Wednesday, Nifty opened up on positive global cues, but continued the trend and declined to close the gap, and closed near unchanged level 5960. The immediate trend is down as long Nifty Spot is closing below the zone of 6005/6030. The breakout level of 5940 is very near, and the Bulls have done well to save this level multiple times till now. A small gap exists below 5935 level till 5915/5905 level. That should be the first minor stop below 5940/5935. However, a fall and close below 5940/5935 would invalidate the breakout post the consolidation of Nifty between 5840 to 5940 level in the month of December. Such a false breakout usually brings a much faster move in the opposite direction. Hence, Positional traders can initiate/ add to their Short positions below this level, with a Stop and Reverse above this level on closing basis.


The Nifty Option OI Charts are given below: 

In Nifty Options, it was a subdued day, with not much addition by either the Bulls and the Bears. The Bears did add a small quantity of 13 lacs+ Open Interest at Nifty Options of 6100 CE and 6200 CE strikes. Overall, 6000 is the clear 50:50 level between the Bulls and the Bears. 5900 and below are the supports, while 6100 and above are the resistances.

For Thursday, immediate resistance for Nifty Spot now comes around 5980/5985 levels. Till the time Nifty Spot stays below this level, intraday traders should look to Sell at resistance levels, or at break of supports, with Stop and Reverse above this zone. Above 5985, the Bulls can take Nifty higher towards 6005 and 6025 levels. On the downside, support for Nifty Spot comes at 5945/4935 levels. As given earlier, a breakdown below this level can take Nifty first towards 5915/5905 levels, and then to much lower levels, as fresh Shorts by traders is expected below this level. Below 5905, immediate target for Nifty Spot will be in 5855/5865 zone.

7 Feb - Nifty Spot resistance at 5985-6005-6025-6055. Support at 5940-5910-5890-5860 - www.niftypower.com

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