21 Jan: Nifty View

In yesterday's Nifty View, it was given that "... On the downside, watch the level of 5660. Below this, Nifty will revisit 5635-5610 levels.." Nifty made exact low at 5634 after breaking 5660. On the upside, resistance was given to be at 5730-5735. Nifty made exact high at 5729, after taking support at 5634. Once again the levels worked. But rather than blindly going Long or Short above/ below a certain level, it is more important for traders to see what Nifty is doing at a particular level. We saw Nifty taking support at 5635-5640 levels, which it confirmed by moving past 5655. It is here, that we at NiftyPower went long for some quick and good gains of 50+ points.

The important levels for Nifty remains the same, 5635-5625 on the downside and 5750-5760 on the upside. Traders may trade this range for now, till we get a breakout/ breakdown. The Options OI data also, does not have anything new to offer. The data shows profit booking at all strikes of Calls and Puts, which is expected near the expiry. The support for now is 5600, while 5800 is a minor resistance. Since, the difference in OI of Call and Put at 5800 is not too great, any move past 5750 on Nifty will take it swiftly towards 5800 and above.

For tomorrow, intraday traders watch the levels of 5745-5750 on the Nifty Spot. If Nifty manages to trade above this level, it will head higher towards 5790-5830 and higher levels. On the downside, support for Nifty spot comes at 5680 levels. If 5680 breaks, Nifty will again slide towards 5660-5635 levels. Break of 5635 will be Bearish and may lead to panic selling.

21 Jan - Nifty spot resistance at 5730-5745-5770-5790-5830. Support at 5680-5660-5635-5620-5580 - www.niftypower.com

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