The Nifty ended in deep red losing more than 2% at 5766.50. On the derivatives front we have seen that the Nifty Futures prices declined along with an overall addition of open interest and decline in the cost of carry, this is an indication of shorts being built at higher levels in the markets. On the options front the OI PCR again has fallen to 1.05 vs. 1.14 as shredding of open interest was seen on the puts front along with addition on calls front. The Indian VIX has shown a rise of 10.62% indicating that the volatility has increased due to bearish sentiments in the markets.Nifty future saw a sharp fall in last trading session and break its psychological support level, closed near to its support level. One should adopt strategy of selling at higher level until it break 6100 level . If nifty future manages to sustain below 5700 level we can see some more correction in it. support for nifty future is at 5730/5670 and resistance is at 5865/5900levels.

Resistance: It has first resistance close to the level of 5865 & after it may face the next resistance close to the level of 5900.

Support: It has first support close to the level of 5730 & after it may get the next support close to the level of 5670.

On the call options front we have seen addition of open interest at strike price of 5800, 5900 and 6000. On the put options front we have seen addition of open interest at strike price of 5600 and 5700 whereas shredding of open interest was seen at strike price of 5900, 6000 and 5800. OI Chart Analysis: From the OI Chart we can see that in December Series maximum addition of open interest on the calls front is seen at strike price of 6000 indicating it as Resistance on the upside whereas on the put options front fresh addition of open interest still is seen at strike price of 5700-5600 indicating it as immediate support on the downside.

Resistance levels: It has first resistance close to the level of 11470 & after it may face the next resistance close to the level of 11615.

Support: It has first support close to the level of 11075 & after it may get the next support close to the level of 10930.