Nifty View for 06.01.2011

Nifty is facing resistance around the 4800 level which it is  not able to cross.Its because of the past price action where it was not able to sustain above this level.Spot nifty is poised between the 4800 and 4700 levels which makes the 4750 level a critical level.The spot nifty should spent more time above the 4750 level to gather the strength to surpass.It is here where the option premiums loose value with nifty taking time to cross the important level of 4800.Positional traders should keep patience for entry above 4800 with suitable stop loss.The ichimoku clouds today look far off on the charts as the price momentum is waning.Below 4724 we may touch 4693 which is the level to watch.Below it we may try to close the gap on spot nifty.Today we have made a lower top which depicts us to remain cautious about the trend.If we make a lower bottom then trend can change.Its been a inside day but not convincing one but enough to create doubts about the trend.Intraday traders can look to trade on levels given below on spot nifty to trade on 06.01.2012.

Spot Nifty levels for intra-day trade on 06.01.2012
No trade between 4733 and 4767(to avoid whipsaws)
Buy above 4767 with SL of 4747  
for targets of 4783-4799(breakout  level on the upside,add positions) 4816-4833-4850-4867-4884-4903.

Sell below 4733 with SL of 4753 
for targets of 4716-4699(breakdown level on downside, add positions)-4682 -4665 -4648- 4631- 4614-4597.
Happy Trading !