9 Nov - Nifty View

On Tuesday, Nifty has once again given a close in the 5280/5290 zone for the third day. This is also its fifth close above 5250 level, which should be an important reference point for traders, who are Bearish on the market and want to go Short. A short trade will be very much on below 5250 Spot, to be confirmed by a break of 5230 Spot. On the upside, today also it faced resistance in the strong resistance zone of 5305/5330. This zone was pointed out in the Nifty View of 31 October. After one week, nifty is still facing resistance in this zone. For traders who want to go long, a breakout above this zone, OR a long now with Stop and Reverse below 5250 seems like the ideal trades. For each of these positional trades, one can keep a Stoploss of not more than 25/30 points.

The Nifty option Open Interest charts are given below:


The Bears seem to be slowly taking on the Option Charts. They added a good 17 lacs+ open interest from 5300 CE to 5500 CE levels.The Bulls on the other hand, added a small amount at 5300 PE and covered at 5200 PE strike. Real addition by in the Put Options can only be seen below 5000 PE strike. Looking at today's Option Charts, a break of 5250 seems more likely than a breakout above 5330. However, we will let the markets decide that, and use this data as an indicator only, rather than a decision making tool. Overall, the range for this month remains 5100 to 5400, with 5200 being a minor support and 5300 being a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5300/5305 levels, above which, a test of the strong resistance level of 5325/5330 is again likely. As given earlier, breakout above this zone should lead us to 5400+ levels, with a minor resistance at 5365 levels. On the downside, support for nifty Spot comes at 5265/5250 levels, below which 5230/5205 and 5170 will be tested. Intraday trend will remain negative, if Nifty trades below 5265/5250 tomorrow.

9 Nov - Nifty Spot resistance at 5305-5330-5365-5395. Support at 5265-5250-5230-5205 - www.niftypower.com

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