Nifty Short term View, 6 January 2011

As we said earlier, Nifty failed to sustain above 6240 and corrected. In the downside, the next crucial level for Nifty is 6050. The level is crucial because, Nifty was resisted in this level earlier for more than two times.

So, if this level is broken in coming trading sessions, Nifty is likely to fall further towards 5900 levels. For the intraday 6120 is crucial. Traders can hold their shorts as long as Nifty trades below 6120.

For the short term, postional traders remain short with a stop 6120. Book some profits around 6050, and continue to your positions if 6050 is broken. Fresh shorts can be considered, if the level 6050 is broken.

Nifty Technical Outlook, Positional & Intraday Trading Levels, calls, and tips, 6 January 2011

Today, 6120 is the crucial intraday level for Nifty.

If Nifty sustains below 6120, then it could test 6050 and below that level it could test 6000.
Instead, if Nifty trades above 6120, then it could test 6190.