Two days of consolidation around the 5995 (34-DEMA) level and the trading range between 5995-6023 initially and in between as expected had a dip towards the all important support level of 5965 level and recovering from there to touch 6018 levels. Nifty remains in the retracement mode after the drastic fall in November series below 6085 levels. VWAP @ close is 6009. Nifty closes @ 5993 just below 34-DEMA and is currently in sell on rise mode.
1) The level of 5952 can be considered as the final support of this retracement on the upside. Nifty has traded above the 55-DEMA level and facing resistance around the 34-DEMA level of 5995 and intra day sessions have been quite choppy, but the volatility has given some good points intra day above 5995 and on break of 5985 levels and from 5965 upwards back up.
2) For Monday the bullish zone will be 5965-6040-6100 with a strict stop loss of 5948 just below the level of 5952. Crossing 6018-6030 zone will be the challenge for traders taking long trades.
3) Failure to close above 5966 levels on Monday could likely take Nifty down to 5885-5770 levels. Strict stop loss for going short will be 6030 on closing basis.
4) The two-day chart shows the price channel to be between 5965 and 6013 @ close. This zone will be a good trading opportunity on Monday too with minimal risk for longs with a s/l of 5958 and for shorts with s/l of 6025.
5) The second chart shows the channel in which Nifty must trade to retrace back to 6300+ levels in the December series. Happy weekend! Happy trading!
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