Sep 30: Nifty View

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Expiry Day and Judgement Day for Ayodhya. Trade light and Trade Safe.

Personally, I do not expect anything special from this expiry. From the options data, an expiry near 6000 nifty levels would keep both the bulls, and the bears happy. In addition, majority traders would like to sit back and digest the News that is going to come out before taking positions. Some long unwinding can come because of this. Any news related movement beyond 5980-5960 and above 6040-6065 on Nifty will show volatile movement due to the high open interest.



For the day, watch the levels of 6000-6005 nifty spot on upside and 5970-5965 on the downside. Break of these levels can easily give 20-25 points either side. Buying near supports and selling at resistances should work for a major part of the day.

Sep 30: Nifty spot resistance at 6005-6020-6035-6065. Support at 5980-5965-5940-5900 - www.niftypower.com

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28 Sep: Nifty View

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In our Yesterday's View, it was given that above 6035-6040, Nifty would target 6065-6080. Nifty did not give us a chance to buy, however, we waited for it to resist around our resistance zone of 6065 and when it reached overbought conditions (see attached chart), took a short trade for a gain of 30-35 points.



It was also given that the 6000 CE and 6100 CE writers would try hard to push Nifty below 6040 on closing basis. Nifty has closed at striking distance of our decision point of 6035-6040. Tomorrow's move will now give an indication of the next move.

For the day, watch the levels of 6030-6010 on the downside for support. Break of 6010 can initiate some intraday selling towards 5980-5960 levels. On the upside, tough resistance now comes near 6050-6065 levels.

Sep 28: Nifty spot resistance at 6050-6065-6090. Support at 6030-6010-5980-5960 - www.niftypower.com

Nifty Option Tips

27 Sep: Nifty View

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In our previous Nifty View, it was written that Nifty faces tough resistance at 6040. Longs can book out near these levels and short at rises with 6040 as stoploss. Nifty could not cross 6040 during the day. First support was given as 5940 and first resistance at 5965. Nifty made a low at 5951 in the opening and once it crossed the first resistance at 5965 and then took support multiple times near that area (Oval portion in chart), we went long and booked handsome gains of 50+ points in Nifty Future.


Now for the day, Nifty spos first resistance again comes near 6035-6040 area. Positive global cues may give it a good start. Traders should wait and see if it sustains above 6035-6040 in the first 30-40 minutes. If it does, one can go long for targets of 6065-6080. Support for Nifty comes at 5990-6000 now. If falls below this levels, can again correct upto 5965-5950 levels.

Since lot of calls are written at 6000 CE and 6100 CE, these guys will try hard to push it below 6040 on closing basis. However, if these guys are forced to cover, we can again see a runup towards 6100 and then towards all time highs. Watch the change in open interest in options during the day to get an idea of the unfolding move. Failure to cross 6040 can again retest lower levels near 5900 before expiry.

27 Sep: Nifty spot resistance at 6035-6065-6080. Support at 6000-5985-5965-5930 - www.niftypower.com

24 Sep: Nifty View

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In Yesterday's Nifty View , it was written that "... strong support for the market at 5900 levels.... to go long on dips with stoploss at 5925-5905 spot Nifty." Nifty made a low near 5930 levels and bounced back. We, however, tried to short on break of support at 5940, and failed. This is the price we have to pay, for not following our own plan. Intraday indicators and news etc. can blur your vision for the day. One has to be very disciplined in following his trading plan.



Now, after the sharp run up, Nifty has entered the range of 5900/5925-6040 and is concolidating. Longs can book out at these levels and enter only if Nifty takes out 6040 next. Options data show increasing OI at 6000 CE and 6100 CE. Hence, 6040 can be a tough resistance for the Bulls. For the bears, a convincing break of 5900 can bring a safe shorting opportunity. However, Nifty is trading below the support area (see chart below). Try to short on rises till 5980-6000 with a and reverse at 6040 for some good gains.

24 Sep: Nifty spot resistance at 5965-5980-6005-6040. Support at 5940-5925-5905-5885 - www.niftypower.com

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23 Sep: Nifty View

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In our last Nifty View, it was written we would see another leg up before the correction. Nifty was hovering d 5850 mark at that time. It went upto near 6050 before consolidating. We have seen some good intraday corrections which has resulted in cooling off of the overbought conditions as per below charts.



Support for the Nifty now comes 5970-5940-5905 levels. Resistance for the upmove is at 6005-6040 levels. High OI at 5900 PE indicates a strong support for the market at 5900 levels. If however it breaks this level for any reason, we will see real profit booking and panic selling. Till then, try to go long on dips with stoploss at 5925-5905 spot Nifty.



23 Sep: Nifty spot resistance at 6005-6040-6055-6080. Support at 5970-5940-5905 - http://www.niftypower.com/

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16 Sep: Nifty View

Nifty continues to rise in Overbought conditions. It was given in Yesterday's View that "For the day, first resistance comes at 5810-5815 spot levels above which Nifty may again try to hit 5835-5855 levels where it will again face resistance..... 15 Sep - Nifty spot resistance at 5810-5835-5845-5870. Support at 5785-5775-5750-5715 - www.niftypower.com".

Nifty opened at our resistance levels of 5810-5815, and immediately took off to trade in the zone of 5835-5855. Once past that, it stopped right at our last resistance point of 5870. We sold near our resistance point of 5860-5870 and booked at 5840.

From the action of the last couple of days, it can be observed that the major moves (Upsides) in Nifty are happening in the very first hour. Thereafter, it cools down and then recovers a bit to close somewhere in between. The effect of this type of movement is that the Weak Shorts & the Weak Bulls, who are looking to square off/ Buy at the slightest of dips are not able to do so, as Nifty remains above the levels of previous day's closing. The Bulls are trying to force them into submission so that they Buy at higher levels. Once these shorts also start to cover, we might see another leg up and then only will the correction begin.



For the day, the immediate resistance comes near today's high of 5870-5875 levels, above which, Nifty may target 5900 levels. On the lower side, Support exists at 5844-5834 levels, break of which will lead to 5815 levels. Overall, Nifty should remain Bullish as long as it trades above 5845 spot. Below 5845, we can see some Profit Booking.

Sep 16 - Nifty spot resistance at 5875-5900-5915-5940. Supports at 5855-5845-5835-5815-5785 - http://www.niftypower.com/

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15 Sep: Nifty Views

Nifty spot, it was written yesterday real resistance will come only at 5820-5835 levels. Nifty made exact high near 5835 levels and reversed sharply from there. We sold at the exact resistance point and got easy points in Day Trading.

For today, nothing much has changed from yesterday. We have had some bit of cooling down and there might be some more today.




The Options OI data indicate Call unwinding at 5700, 5800 levels and small Put Addition at 5700 and 5800 levels. Not much Call writing is seen which is understandable as Call writers have faced heavy losses this month. Hence, the upside is still open for the Nifty while on the downside supports exists.

For the day, first resistance comes at 5810-5815 spot levels above which Nifty may again try to hit 5835-5855 levels where it will again face resistance. On the downside, supports exits at 5785-5775 levels, below which, next immediate support will come at 5760-5750 levels. Positional shorts are not advised yet. Shorting can be done only on intraday basis, but be quick to book gains.

15 Sep - Nifty spot resistance at 5810-5835-5845-5870. Support at 5785-5775-5750-5715 - www.niftypower.com

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Sep 14: When the Last Bear turns a Bull... Sell!!

The movement of Nifty in the Past few days could has left most of the traders dumbfounded. There we were, on the verge of breakdown near 5360 last week. But the force of this upmove has left everyone dumbfounded.

Technicals are highly in favour of the upmove continuing. This might be the breakout that everyone was looking and waiting for months. A look at the chart below will tell us that the price is currently moving above all major averages and supports. Buyers will now come in at all dips near the support areas.




However, the leading indicators are in the overbought status. We might see some rangebound activity today after the heady upmove from yesterday. A time correction will correct the OverBought status of Nifty.

We would still prefer to wait and watch this upmove of Nifty. When everyone around has become so Bullish on the Nifty, it Scares me. As they say, "When the last Bear turns a Bull... SELL!" Well, Don't go out there and Short blindly, but wait to see the first sign of weakness and then jump in. Don't get caught on the wrong foot at such high Levels. It is better to miss the rally altogether than Risking your money. Stay out in Case of ANY Confusion. JUMP IN as soon as you are SURE!

For the day, first support comes near 5740 levels, break of which may see Nifty sliding towards 5710 levels, where buying support is likely to emerge. On the upside, resistance comes near 5780 levels. Realresistance for this upmove will come near 5820-5835 levels, from where, a milk correction may be witnessed.

For 14 Sep - Nifty spot resistance at 5780-5800-5815-5835. Support at 5740-5710-5695-5670 - http://www.niftypower.com/