The benchmark index must trade above 6194 mark in the initial hour of trade conclusively for the market to go up, in which case the resistances will be at 6237, 6306 and 6166. Otherwise, i.e. below 6194, the market will remain weak and bearish with supports at 6123, 6080 and 6010.
A breach of the key support of 6141 conclusively with good volumes and/or on closing basis will imply that the Nifty will be headed towards the 5946 mark.
Intra-day traders may trade in January 2014 series from today onwards. They may trade accordingly depending on which side of the 6194 mark the index trades. They may go short if the index trades conclusively below 6194 in the initial trades with stop loss at 6200. In case if Nifty trades above 6194 conclusively then they may trade on the long side with stop loss at 6246.
Short-term traders too may exit all their positions in current series and start trading in January 2014 series. They may continue to short Nifty at higher levels with strict stop loss at 6220. They may go long if Nifty conclusively trades above 6220 mark with a target of 6306. They may consider going long in HCL Technologies with stop loss at 1200 and book their profit within the day or next.
Mid-term investors may utilize the current weakness to buy Tata Steel by placing bid @ 398.05 and 381.55, buy HCL Tech @ 1202.05 and 1169 and buy HDFC Bank @ 637.30 in small quantities.
Disclaimer: The writers of this column do not personally hold any stock or position in the F&O market and do not intend to benefit in any way by publishing this column. The final discretion is that of the reader and we disown any responsibility for any loss incurred by the reader.
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