25 Oct - Nifty View

A shortened series comes to an end tomorrow. It was another series within the range set in August/September, however, with a reduced volatility than was seen in Sepember. A lot of moves in this expiry happened by way of Gap Ups and Gap Downs. Tomorrow, apart from expiry, is a News Heavy Day. Hence, expecting some Tops and Turns is normal tomorrow. Trade light and with discipline. Quite often, a trending move starts on Expiry Days. Lets see what this expiry brings.

The Nifty option Open Interest charts are given below:
One day before expiry, it is normally expected that OI will be covered in the ITM Options. That was the case today at almost all the strikes, except for the big addition of 8 lacs+ OI at 5200 PE. We would not read too much into this one day before the expiry. Apart from that, the range remains the same, with 5100 becoming a 50:50 level between the Bulls and the Bears. Looking at the Options table, an expiry between 5100 to 5200 would give maximum benefit to the Option Writers.

For tomorrow, immediate resistance for Nifty Spot comes at 5115/5120 levels. Above this, it will again head towards 5145/5150 levels, above which, lies the toughest resistance of 5175/5180. On the downside, support for Nifty Spot comes at 5070/5075 levels, below which, the support of 5030 is expected to be tested and broken, eventually. Tomorrow, be long above 5120 and be short below 5070. Only fast and nimble traders attempt trades in between.

25 Oct - Nifty Spot resistance at 5120-5150-5175-5205. Support at 5070-5035-5005-4970 - www.niftypower.com

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