Reliance Industries (RIL) is at a key Support Level of 830-840, and break below it can cause negative momentum and long unwinding, which can result in drop to 760-770 levels, where a strong support exists. In very negative market conditions with Nifty falling below 5000, RIL may revisit 700 level, which is 20% downside from here. From the current level, RIL can also bounce back up to 900. Therefore, a long side trade needs Dec 800 Put options.

Nifty closed today at 5989, and has reached significant support zone. If 5950 to 6000 holds then Nifty may be ready for big upmove of 200 points towards 6200. Downside risks are smaller than upside potential as of today after after 7 consecutive Red Days. The Nifty and Bank Nifty have held their support levels. The Nifty intra-day movements were choppy, but with all the noise, the Index maintained its support area of 5950 to 6000. The Bank Nifty also holds its minor support and closed higher. SBI and ICICI Bank closed in green showing their readiness to move up sharply at first opportunity. The risk reward scenario for new long positions in the Nifty is good for 150-200 points gain, towards 6150-6200. Choppiness continues in CNX IT and prices are trading inside a large trading range. In the CNX REALITY Index, which reflects the real estate sector, trend is down in this sector and prices are moving down.