Resistance for Nifty at 6120-6150: Way2Wealth.com

According to Way2Wealth.com, Nifty will continue to see stiff resistance around 6120-6150 levels. Overall, indices are looking range bound and will continue to trade in broad range of 5980-6150 levels.

February 10, 2014 / 09:51 IST

Way2Wealth.com's Derivative Report:

Last week, Indian bourses opened on weak note but on lower side found strong support around its 200 DMA and thereafter consolidated in narrow band of 40-50 points. In last two trading session short covering was seen from lower levels that helped indices to recover from weekly low of 5920 level and close around 6063 down by almost 0.50 percent on weekly basis. Short covering was seen in Nifty and Bank Nifty fut. in Friday’s session whereas CNXIT fut. saw profit booking from higher levels.

Short unwinding was seen across the board in last trading session and stocks fut. shed almost 1.19 crore shares in OI. Major short unwinding was seen in Bank of Baroda, Aurobindo Pharma, Ambuja cements, sslt, Biocon and Sun Pharmaceutical Industries.

Fresh long accumulation was seen in stocks like Dr Reddys Laboratories, Adani Power, Tata Motors, Indian Overseas Bank, Bajaj Auto and Ranbaxy Laboratories.

Idea Cellular, Andhra Bank, Mcleod Russel (India), colpal, Tata Consultancy Services, and MRF were some of the stocks that added short positions. This week, markets are expected to open on flat to positive note and will continue to see stiff resistance around 6120-6150 levels. Overall, indices are looking range bound and will continue to trade in broad range of 5980-6150 levels before giving any fresh breakout