Nifty for 08122010: Nifty falls below 5950 once and for closing recovered very well but closed in red.  Nifty open interest was down by 9.9 lakhs means the confirmation of no long. FIIs sold in all the segments. US markets also lost the opening steam. Asian markets are flat. Nifty is expected further down today. If not go long above 6000 and stop loss is same.

Nifty for 07122010: Nifty yesterday opened up and traded higher and future reached to a high of 6094. A bullish breakout. Means markets have to go up and reach 6250 but this steam was lost in the after noon trading and nifty closed flat with a red colour. Nifty future shed open interest a little bit means weakness. FII sold in cash, F&O index futures, but bought in cash futures. US markets covered the fall and closed flat. Now Asian markets are flat to red.  Nifty if falls now means medium to long term fall. If nifty breaks 5950 a fall that may result in breaking of 5700 and to a first target of 5555. 

Nifty for 06122010: Nifty closed in this week at 5992 showing a bullish candle on weekly chart. OK. FII data is positive in cash/F&O. Global cues are flat to positive. But, the last two days of the week is consolidation at higher levels. And the nifty open interest is down by 1.13 lakh shows that the steam is less now. The market is at resistance zone.

Hence, if nifty falls below 5950 the markets may be in bear grip for the medium term (which may lead to long term) until nifty corrects 20% from top. This may take to 2 months or more. But, if nifty breaks resistance zone 6050-6070 we may see 6250 surely. We may think for a down swing at the top levels.