4 Jan - Nifty View

Nifty had a trend today, after the Bullish Hammer formed on Daily Charts yesterday. It cleared its resistance zone of 4690-4720 in the morning trades, and thereafter had a continuous upmove, to close near its next strong resistance of 4760. Now, as long as it stays above the 4690/4720 zone, consider the trend as up only. Traders who initiated long above 4720 can keep a stop and reverse at 4690.

The Nifty option OI Charts are given below:

The one Strike that stands out in today's Options Charts is 4700 PE. Huge addition of 18 lacs+ OI by the Bulls was done at this strike. Apart from this, the Bulls also added OI from 4500 PE to 4800 PE strikes. From the Bears, the was big amount of covering that was done at 4700 CE strike. The action at 4700 CE and 4700 PE gives a very Bullish picture as of now. We can wait for a follow-up action in the coming days. But the Bulls seem to be determined to form a support at this level as of now. 4500 to 5000 is the broad range as per the Options Charts. 4600 to 4900 is a narrower range, with 4700 as a minor support, and 4800 as a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 4775 levels, above which, it will again test the recent highs near 4800 level. The Bears are expected to give stiff resistance at 4800 to the Bulls. However, if that level is breached, we may see another short covering rally for 4850/4870 and 4920 levels. On the downside, support for Nifty Spot now comes at 4750 levels. Below this, the support of 4720/4725 can be tested again. Consider the trend as up only till Nifty stays above 4720. Below 4720, 4690/4695 can be tested. The zone of of 4690-4720 is a no trading zone. Below 4690, Bears will have an upper hand, and this breakout will can be considered to be a failed breakout.

4 Jan - Nifty Spot resistance at 4775-4800-4850-5875. Support at 4750-4725-4690-4640 - www.niftypower.com

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3 Jan - Nifty View

On Monday, Nifty closed slightly up after declining to 4588 intraday, forming a sort of Bullish Hammer candlestick on Daily Charts. Tomorrow, if it is able to sustain above the closing price of today, then the Bulls may attempt a rally towards 4690/4720 zone. What happens in that zone remains to be seen.

The Nifty option OI Charts are given below:

Today, the Bulls added 21 lacs+ OI from 4300 PE to 4600 PE strikes. On the other hand, the Bears added a smaller amount of 14 lacs+ OI from 4600 CE to 4900 CE strikes. The range developing for this series as per the Options Charts is 4500 to 5000. Supports are at 4600 and below levels. Resistances are at 4700 and above levels.

For tomorrow, immediate resistance for Nifty Spot comes at 4645 levels. Above this, it will test its next resistance at 4670 . Above 4670, Nifty will again head towards the No Trading Zone of 4690 to 4720. Both the Bulls and the Bears are expected to fight it out in this zone, and it is better to watch who wins before initiating a trade in this zone. Above 4720, we can witness a short covering rally. And below 4690, the downtrend will remain intact. on the downside, support for Nifty Spot comes at 4620 and 4590 levels, below which the recent lows of 4550 and 4530 will be tested.

3 Jan - Nifty Spot resistance at 4645-4670-4690-4720. Support at 4620-4590-4555-4530 - www.niftypower.com

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2 Jan - Nifty View

On the Last Day of 2011, nifty closed on a negative at the lows of day near 4620 levels. Positional traders who are in Shorts from 4700 levels can now move their stoploss near Cost and trade safe. Trend remains down till Nifty does not give a close above 4720 now. On the downside, the previous Swing lows 4550/4530 will be important supports to watch out are. Important to note is the falling trendline being formed on the Daily Charts. If Nifty takes support on this falling trendline and bounces from the lows, it will form a Bullish Wolfe Wave on Daily Charts, which can lead to a big recovery. Having said that, there is no need to Speculate and try and find the market bottoms, because if at all any recovery comes, then Long Trades should be initiated Only After Nifty gives a close above 4720.

The Nifty option OI Charts are given below:

At the start of the series, it was interesting to see good addition by both, the Bulls and the Bears. The Bulls added a good amount of 16 lacs+ OI at 4500 PE and 4600 PE strikes. Bears also added big amount of 31 lacs+ OI from 4700 CE to 5000 CE strikes. overall, at the start of the series, 4500 to 5000 is the range developing from the Options Charts. 4600 is a minor support, while 4700 and above are the resistances as of now.

For tomorrow, immediate resistance for Nifty Spot comes at earlier support of 4635/4640 levels. Staying above this, it will head for higher level resistances of 4670/4680 levels, where again the Bears are expected to become active. If somehow the bulls manage to clear this resistance zone, the the trend changing level of 4720 will be the next big resistance for Nifty Spot. on the downside, support for Nifty Spot comes around 4600/4595 levels. Below this zone, the Bears can easily push it down towards recent lows of 4555/4530 levels, and probably even lower levels. For tomorrow, Stay Short as long as Nifty stays below 4630 level.

2 Jan - Nifty Spot resistance at 4635-4670-4700-4725. Support at 4595-4555-4530-4480 - www.niftypower.com

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