Nifty View for 04.01.2012

Nifty moved today one way and there was no respite for bears as bull were on rampage.Spot Nifty opened with a gap and never looked back.The trend has changed with higher high and higher low at 4773.10 and 4675.80 respectively.Now the resistance on the spot nifty looks at 4815 and intermediate resistance around 4782. Above 4815 we have resistance at 4850.Its been a habit on spot nifty recently whenever it opens with gap it never looks back and at times buying out of money call gives huge returns like 4700CE from 108 at open to high of 169.20 and close of 156.70.Positional traders were warned to cover short and long above 4650 with sl of 4600 those who could trade our call are in profits as given our first target of 4672 was achieved at open so no entry but above 4672 second target was 4750 and we closed above it.Now what next, positional traders can hold their longs with stop loss of 4750 level below which 4734-4718-4693-4665 can be retraced by spot nifty.Sustaining above 4750 we may reach 4815-4850 soon.Intraday traders can look for levels given below on spot nifty to trade on 04.1.2012.

Spot Nifty levels for intra-day trade on 04.01.2012
No trade between 4748 and 4782(to avoid whipsaws)
Buy above 4782 with SL of 4762  
for targets of 4799-4816(breakout  level on the upside,add positions) -4833-4850-4867-4884-4903-4920.
Sell below 4748 with SL of 4768 
for targets of 4731-4714(breakdown level on downside, add positions)-4697-4680 -4663 -4646- 4629- 4612.
Happy Trading !