New year gave a good start on nifty. All these happened when US Senate approved an agreement to raise taxes on the wealthy and stave off deep spending cuts, hours after the White House and Senate Republicans hatched a New Year’s Eve deal to keep the U.S. from falling off the fiscal cliff. 5965 is next resistance on chart. Market opened gap up and sustained above its gap up. If nifty does not cross 5965 then it may fall to 5912 level. 5988- 6011 -6026 is next resistance after 5965. As per nifty EOD chart triangle breakout pattern has formed on daily chart, indicating the further trend. As per option open interest data. Nifty 6200 call added 1286900 contracts in open interest. 5900 put added 800000 new contracts in open interest. 6000 put added 770050 fresh contracts in open interest. All this option open interest data indicating further trend.
Increase your stop loss and stay with trend. swing traders stop loss for the long should be at 5912 on the closing basis. As i had told you in 28 Jan x- ray report that blasting rally is awaiting in Indian market. I was expecting it till 31st Dec but it didn't happen and now expected to complete its dues rally.
