11 Aug: Nifty View

The confusion among the traders continues. Nifty has become a dream for the day trader, and a is giving a "Stay Out" message to the Positional Traders. The trend remains down, after the breakdown below 5500. This movement can be termed as a Volatile correction to the fall from 5500 levels. A break below 5000 again would confirm resumption of the downtrend. A breakout above 5230 and 5330 should give us rangebound moves again. Trade keeping in mind both possibilities. Also, if the breakout turns out to be a whipsaw, do not forget to reverse your trade immediately, as it can give swift movement on the opposite side.

The Options OI charts are given below:

As yesterday, the Option Writers preferred to watch from the sidelines. This is definitely not the right time to be selling options. However, there is surprising addition of 26 lacs+ addition at 4600 PE. There is also simultaneous covering of 13 lacs+ at 4500 PE levels. This data if correct, point to to some very bearish possibilities. However, this data will have to be verified tomorrow. Overall, support for NIfty remains at 5000. 5100 is also a minor support. 5200 is the battlezone level. Minor resistances are 5300 and 5400 and major resistance is at 5500.

For tomorrow, immediate resistance for Nifty spot comes at 5160 and 5180 levels. If it sustains above these, it will target its breakout point of 5230 Spot. Above 5225, the Gap level of 5325 will be in sight. On the downside, immediate support for Nifty Spot comes at 5110 levels. Below this, it will test lower levels of 5075 and 5040. If trades below 5040 also, a break of 5000 will be on the cards.

11 Aug: Nifty spot resistance at 5180-5230-5265-5325. Support at 5110-5075-5040-4980 - www.niftypower.com

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