Nifty Futures just survived the level of 5880 as the closing was seen above this level which is a crucial level in the current scenario. An earlier sign of weakness will be seen once Nifty Futures dips below the 5880 level and a free fall may be seen below 5800. One may enter short positions below the level of 5840 with a stop loss of 5920 on closing basis. The timing cycle analysis indicates 16th December or 20th December as the crucial days when a major breakdown may be seen. According to Elliot Wave Theory, any downward price gap down opening of more than 30—40 points may be a signal of the start of a downward 3rd wave and hence a mounting selling pressure may be witnessed. Till Nifty Futures trades below 6150, the short term trend will be in the downward direction. The intraday supports for Nifty futures are placed at 5880 and 5840 whereas the resistance levels are placed at 5930 and 5980.
On Stock specific, Short sell HDIL Futures (CMP: 187) with the stop loss of 197 and target of 177 for 16th Dec 2010