12 May - Nifty View

Nifty has been consolidating in the range of 5470 to 5600 for the past six days now. Break of this range will give the next trending move. The consensus seems to be for the downside, but market seldom follows consensus. Hence, let the market tell which way it wants to go, before taking the next move. Once this range is broken, these 130 points range will become very difficult for Nifty to scale back. Positional trades can be opened outside of this range with tight stoplosses of 20-25 points.

The Options OI table is given below:

The Options OI table gives the same picture. 5500/5600 are the levels which the Bulls and the Bears are fighting for. 5400 and below are the supports, and 5700 and above are the resistances. Once this level of 5500/5600 is resolved, the OI should decrease from the losing side. That should give us more indication of the size of upmove/ downmove expected outside of this range.

For today, immediate resistance for Nifty Spot comes at 5595/ 5600 levels. Breakout above this, will lead to short covering till 5626/5630-5660 levels and higher. On the downside, support for Nifty Spot exists at 5550/5540 levels. Below this, it will slide towards 5520-5500 and 5470 levels. As written earlier also, 5470 to 5600 is the trading range. Till it stays within this range, trade for small gains with tight stoplosses.

12 May - Nifty Spot resistance at 5595-5625-5660-5695. Support at 5545-5520-5500-5470 - www.niftypower.com

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