18 Jan: Nifty View

After such volatile days, we finally had some sanity returning on Nifty. Rangebound days are frustrating for both the Bulls and the Bears. However, today's move would have been a welcome break for most of the traders. This is rightly depicted in the Volumes.

In yesterday's Nifty View, the supports were mentioned at 5630 and 5615, while the resistances mentioned were 5675 and 5700. Nifty's actual Low and High was 5624 and 5696 respectively. The options data show addition in OI at 5700 CE strike while reduction at 5700 PE to 6000 PE strike. However, we would not rely too much on the Options data at this stage. The addition in OI at this stage cannot be considered to be purely written options, as the volatility is too high. They can be part of Hedged Positions, Covered Calls, or simply Long Positions. Hence, we would not analyze the Options data in detail as of now.

For tomorrow, Intraday traders watch the action near 5630 Spot on the downside and 5695 on the upside. A downside break below 5630 can lead Nifty to 5605-5580 levels, while an upside break above 5695 can show 5730-5750 levels. Trade the range till we get a breakout/ breakdown.

18 Jan: Nifty spot resistance at 5695-5715-5740-5790. Support at 5630-5605-5585-5555 - www.niftypower.com

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