Nifty View for 10.01.2012

Spot Nifty is moving in a narrow range of  100 odd points without any clear direction.Interesting fact is that it is closing in narrow band of 4736 to 4766 of 30 points for the last 6 trading days.Its positive as it is at the higher end of the current range of 4700-4800 levels most of the times.One can observe that we are trying to move of the shadow of the resistance line formed by connecting the tops of 07.12.2011 and 06.01.2012. The major resistance is the trendline connecting the tops of 28.10.2011 and 07.12.2011.It is imperative to move out of the shadows of the two trendlines to get a breakout on the upside.We are trying to break out on the upside above the 4800 levels with five attempts in the past.The more times we hit a resistance the chances of breaking it are more.If it is break out now it should within the next two to three days if not tomorrow.Above 4800 we may move roughly 100 points upto 4925-4950.Now on the downside we have supports at 4693 and 4632 or roughly 4700-100 =4600 the current range of 100 points.So positional traders can look at the observations and take positions accordingly.Intraday traders can look at the levels given below for spot nifty for 10.01.2012.

Spot Nifty levels for intra-day trade on 10.01.2012
No trade between 4726 and 4760(to avoid whipsaws)
Buy above 4760 with SL of 4740  
for targets of 4777-4794(breakout  level on the upside,add positions) 4811-4828-4845-4862-4879-4896.

Sell below 4726 with SL of 4746 
for targets of 4709-4692(breakdown level on downside, add positions)-4675 -4658 -4641- 4624- 4607-4590.
Happy Trading !