Nifty futures made a new high at 6002.85 and then on profit booking gave up the gains to close at 5931. On charts the divergence on both indicators seems to have worked out for the short term. The channels on both price and indicators needs to be watched for further clues on short term trend. This is the second time that profit booking has come at higher levels making it suspect for distribution happening at higher levels or regular profit booking at higher levels. The price channel bottom is at 5800-5820 levels on chart so we could come to this level if correction sustains further. Let us revise the monthly levels for December series. The pivot was at 5821(can see correction up to this level and trend can turn down below this level for the series, so keep watch on this levels).The resistances above the pivot where at 5898-5936-6052. So 6052 is the third resistance level to be watched in future. So above 6000 we have 6052-6129 to be watched. Intraday traders can look at the levels on spot nifty given below to trade on Wednesday.
No trade between 5880 and 5918(To avoid whipsaws)
Buy above 5918 sl of 5898
targets 5937-5956(add positions, breakout on the upside),
5975-5994-6013-6032-6051.
Sell below 5880 sl of 5900
targets 5861-5842(add positions,breakout on the downside)
5823-5804-5785-5766-5747.
Happy Trading !!!
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