Nifty View for 01.01.2013

Nifty futures today opened with a gap up of 25 points but open and high was same which was seen as an reversal for the day. But the damage done was petty and closed near the Friday's close with a loss of  5 points. One simple advice for the trend players just look for the level of 5898 on the futures at the close for every trading day. If the close is below this pivot level for January series do not carry longs. This a personal advice with safety for your capital.      (" Sar Salamat to Pagdi Pachass ") What you will loose is the profits on the trade but not your capital. But if you hold and it boomerangs on you  then the loss could be unlimited. Why because we had a fantastic run for nearly 1300 points for the index this year. If we get a sudden reversal the initial momentum can be brutal and it may not give you a second chance. Keep booking your profits as and when you see them. In sideways move the profits should be small or you will be hitting stop loss levels regularly and cursing yourself for not taking the profits after seeing them in the morning. After saying that keep in mind the trend is up and there has been no reversal signal seen yet. On charts we can the rising channel still held for the main trend direction. Also sideways channel action is seen for the short term trend. We are at the top end of the small channel. Try to trade the breakout on the upside. Within channel keep small profit targets. On breach of the channel on the downside go short and watch for the breach of the main trend channel on the downside to add/hold the positions. The monthly levels for this series are pivot at 5898.The resistances for the series are at 5975-6052-6129 look for booking for profits as and when they come and try to enter again on sustaining above the levels. The supports for the series are at 5821-5747-5673. Intraday traders can look at the levels on spot nifty given below to trade on Tuesday.

No trade between 5886 and 5924(To avoid whipsaws)

Buy above 5924 sl of 5904

targets 5943-5962(add positions, breakout on the upside),

5981-6000-6019-6038-6057.

Sell below 5886  sl of 5906

targets 5867-5848(add positions,breakout on the downside)

5829-5810-5791-5772-5753.

Happy Trading !!!