Nifty faced stiff resistance close to the mentioned resistance zone of 6350-70 and is expected to trade down till 6050 in the short term.Though has not broken the upward slopping trend line bank nifty has breached a major support zone and marching towards 10700 soon.Most of stocks are not giving any breakdowns as such and thus it is better to go with bank nifty than any other stock on the sell side. Stocks would give better opportunities to re enter at lower levels. Only private banking stocks such as Indus ind bank and YES bank are offering some trades on the downside where as they can touch 390 and 340 levels respectively in the short term. Options data is suggesting some call writing happening at 6300 and 6400 strikes and it clearly says it is difficult to think about 6400+ levels before seeing 6100 level on the downside. I was cautious on nifty from the day India VIX traded below 15 levels and it has been mentioned in the previous post. Thus dont be an options seller and go for long options strategies as the volatility is expected to rise in the coming days. As per the time cycle Jan2-5 are important dates and nifty has probably formed a top in the short term
