13 Oct - Nifty View

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It was a News heavy day today, with Infosys results and IIP numbers, and Nifty traded in a volatile manner before making a big move up to reach 5100 levels. This rally up has been a strong rally from the Bulls. Supports have tested intraday (at 4990 today and 4880 earlier), and buying has emerged from the supports. Hence, a sudden fall in the market looks difficult at this stage. However, Nifty is again reaching the crucial resistance of 5180/5230. Also, it is already up 4% this week. It can still gain more, but it will require an extraordinary effort from the Bulls to cross it. Hence, Positional longs should book here and look for a trade early next week. For intraday traders, it is now a Buy on Dips, till supports at 4990 is held now.

The Nifty option Open Interest charts are given below:
The Option Charts depict a completely Bullish picture today. Huge addition of 45 lacs+ OI was done by the Bulls at 4900 PE to 5100 PE strikes. The Bears covered 22 lacs+ OI at 5000 CE, 5100 CE and 5200 CE strikes. 5200 still remains as the most important resistance from the Option Charts, with an OI of 56 lacs+ at 5200 CE strike. The support is now at 4900. 5000 and 5100 are the 50:50 levels as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5120/5130 levels. Above this, it will head for strong resistance zone at 5175-5230 levels. As always, movement at this zone will be crucial. Positional traders can think of buying an Option straddle if Nifty reaches this level, as big move either side can come from this level. On the downside, support for nifty Spot comes at 5080 and 5045 level. Below 5045, Bears will try to push it lower towards 5025/5005 levels, where again, buying support is expected from the Bulls.

13 Oct - Nifty Spot resistance at 5125-5155-5175-5230. Support at 5080-5045-5025-5005 - www.niftypower.com

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