The Nifty ended in the red territory losing nearly a percent below its 5900 mark at 5892.30. On the derivatives front we have seen that the Nifty Futures prices ended in the red zone along with shredding of open interest and decline in the cost of carry, this is an indication of unwinding by the longs. On the options front we have seen that the OI PCR has declined to 1.20 vs. 1.31, this has been seen mainly on account of shreddingof open interest on the puts front. Nifty future was not sustaining at higher levels in last trading session and it was not able to break its major resistance of 5980 level. One should adopt a strategy of sell at higher level until it break 6000 levels. Support for nifty future is at 5800/5740 and resistance is at 5980/6040 level.

RESISTANCE: It has first resistance close to the level of 5980 & after that it may face the next resistance close to the level of 6040.

SUPPORT: It has first support close to the level of 5800 & after that it may get the next support close to the level of 5740.

On the call options front we have seen addition of open interest at strike price of 6000.

On the put options front we have seen shredding of open interest at strike price of 5600, 5800, 5900, 6000 and 6100.

OI Chart Analysis:In December Series maximum addition of open interest on the calls front is seen atstrike price of 6000 indicating it as Resistance on the upside whereas on the put options front shredding of open interest was seen almost across every strike in last trading session, but still the 5800-5700 strike has the highest open interest indicating that this range might act as support zone on the downside.

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