Nifty did not cross 6135 today and broke down from 6105 spot levels to retest yesterday's breakout level of 6045 and closed at the 5-DEMA level of 6066. The closing VWAP of 6104 reflects the inability to hold the levels of 6105+ today. Nifty managed to close above 6060 this week too.
1) Views remain unchanged for Monday with 6060 as strict stop loss for longs. The safest trading range in case of a high gap up opening on Monday above today's high of 6121 is to go long at 6135 spot prices with stop loss of 6100 intra day for targets of 6180-6220.
2) In case of a gap down opening below 6050 and downside breakout, the 34-DEMA level (now at 5964) will come into play again.
3) The weekly chart does not show any alarming break down, as Nifty has just consolidated in the lower band of 5966-6128 levels this week and should ideally go up and not down. Expiry week and high volatility also gives opportunity to trade intra day with 6200CE and 6100 PE respectively depending on the trend. The closing level of Monday will set the trend for November series. Happy weekend! Happy trading!
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