6 Sep: Nifty View

Nifty entered into a Pause mode from the recent rally today. 4900/4880 on the downside and 5080/5120 is the broad range developing as of now. Between them, 4945 and 5035 are the immediate breakout/ breakdown levels. Trades can be entered on violation of the immediate levels, which will be confirmed only on a breakout/ breakdown from the larger range.

The Option OI Charts are given below:

Once again, there is significant addition at deep OTM strike of 4400 PE. As usual, we will continue to ignore this data. Such addition can be a part of some hedging strategy or covered trades. Naked writing at such faraway levels does not make sense. Apart from this, Bulls added OI at 4800 PE to 5100 PE strikes, while the Bears still chose to stay away once again, adding a small amount of OI at 5000 CE and 5100 CE strike. From the Options charts, 4800 to 5200 is the broad range, with 5000 being the battlezone level as of now. 4900 is a minor support, and 5100 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5035/5040 levels. Above this, it will target its higher resistance areas of 5080-5110 and 5155. On the downside, support for Nifty Spot comes at 5000-5005 levels. If trades below this in morning, it will towards lower support area of 4965 and 4945. Below 4945, some panic selling will be witnessed for lower levels of 4920 and 4880. As written earlier, consider 4945 and 5035 as immediate breakout levels. Between them trade the narrowing range with the help of oscillators.

6 Sep: Nifty Spot resistance at 5035-5080-5110-5155. Support at 5000-4965-4945-4920 - www.niftypower.com

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