13 Nov: Nifty View - Time to go Long??

Nifty made a smart recovery on Friday, to keep the hopes of the Bulls alive. Now when the world is turning Bearish, I would like to bring the attention of the readers to our post of 8 November. You can read it by clicking here. The world was highly Bullish on that day, when we were turning Bearish. Now when the world is turning Bearish, We would like to remind you of another post written sometime in October. That post read, "...We have been advising against positional longs from the beginning of the week. The time for going long will definitely come. Grab it with both hands when it does and do not miss out due to fear...".

Well... is it the time to go long?? Not Yet. Nifty has to show strength in this upmove . The levels to watchout for on the upside are 5850, 5900 and 5930 spot.Only a close above 5930 would make positional longs Safe for now. This would also mean that 5690 has been saved by the Bulls, a higher Low has been formed keeping the uptrend intact. Hence, watch these levels with lot of interest. If Nifty sustains above these levels, then we would definitely advise Positional longs with a proper stoploss.

The Options OI of Friday show more than 8 lacs OI addition at 5800 PE levels and not much additions at 5800 CE. This level would be a good support in the coming days. 5900 is still an undecided level while 6000 is strong resistance. Nifty movement at the start of next week would give more clarity on who takes over the level of 5900.

For tomorrow, watch the levels of 5875/5880 on the upside and 5820/5825 on the downside for first signs of strength or weakness. Above 5880, Nifty will try to test 5900-5930 on the upside. Above 5930, we wills see some panic short covering from the Bears. on the downside, break below 5820 spot would again invite some selling from the Bears and we can see a revisit of 5800-5750 type of levels .

13 Dec: Nifty spot resistance at 5880-5895-5930-5970-5995. Support at 5850-5820-5800-5775-5750 - www.niftypower.com

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9 Dec: Nifty View

The chart above tells the complete story of Yesterday. Nifty opened below our reference level of 5960 spot, moved below Our lower support at 5930 Spot, Took resistance multiple times at 5930 to finally breakdown and have a visit below our last support of 5885 (actual low of 5878). From there, we got a bounce of around 30+ points. For anyone, who follows only the charts and not his emotions, yesterday should have been an easy day of trade.

Now once again, the previous supports of 5930 and 5960 spot will act as resistances for the Nifty. Nifty should give a minimum close above 5960to be back into the range of 5930 - 6070. Till then, it is a sell on rises market.

The Options OI also indicate big amount of OI addition at 6000 CE and 5900 CE levels. While OI of 6000 PE and 5900 PE was reduced by a decent amount yesterday. The Options data suggest some more pain left for the Bulls. They will have to give a minimum close above 5960 to scare away the 5900 CE ariters first. Any close above 6000 now will lead to panic covering from these writers. However, that is just wishful thinking at this stage.

For today, watch the resistance at 5915 spot and then 5930 Spot. If Nifty manages to trade above 5930, it will again try to target 5950/ 5960 levels where again it will see some selling pressure. On the lower side, minor support exists at 5880/5885 spot. Below this,we will see 5860/5850/5820 kind of levels. 5800 is still a strong support according to Options data and that would be a good buying zone if at all Nifty goes near 5800-5825 zone.

9 Dec: Nifty spot resistance at 5915-5930-5950-5960-5985. Support at 5900-5885-5860-5850-5820 - www.niftypower.com

8 Dec: Nifty View

First a false breakout above 6030 Spot. Next a false breakdown below 5960 spot? As the Breakout above 6030 happened with overbought indicators, we did not believe it, Similarly, today the breakdown happened with oversold indicators. At NiftyPower, we took two short trades today. One near 5965 spot levels, which gave us a profit of 20+ points. The other trade we took was in late afternoon near 5985 levels. This also gave us quick 35+ points. Overall, it was a good trading day for us.

The Options OI data today show an almost equal amount of OI addition at 6000 CE and 6000 PE. 6000 will be the level of tug and war between the Bulls and the Bears. Once the OI at this level is resolved, we will have more conviction in the Breakout or the Breakdown. Till then trade the range of 5960/5930 to 6030/6070.

For tomorrow, once again watch the level of 6010 on the upside and 5960 on the downside. A move above/ below these levels can give quick movement of 25+ points. If Nifty trades in a rangebound manner, then trade this range of 5960 - 6010 with tight stoplosses.

8 Dec: Nifty spot resistance at 5990-6010-6030-6060-6070. Support at 5970-5955-5940-5915-5905-5885 - www.niftypower.com

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