5730 did the trick again. Nifty opened right at this resistance zone and started falling right away. It kept correcting for entire day, never giving a chance for the Bulls to show any strength. The January expiry happened at the lowest level of the series. Historically, January closings have been important for the market. Hence, it will be very interesting to watch where the market goes from here.
The Options OI data show that the Bulls have added Puts at 5600, 5500 and 5400 strikes. It is still too early to deduct anything from the OI, but one thing that comes out clearly from it is the battle zone at 5700. It has almost equal Open Interest at this stage. Puts have more OI 5700 strike, and Calls have more OI above 5700 strikes. The activity at 5700 strike in coming days will give more indication of the coming movement in Nifty.
For tomorrow, immediate resistance for Nifty Spot now comes at 5630-5635 levels. Sustaining above 5635, Nifty would try to attempt 5655-5660 and 5690 levels. On the downside, support for Nifty Spot comes at 5585 levels, below which, strong support comes at 5550-5530 levels. Nifty is at an oversold level and a bounceback towards 5650 levels cannot be ruled out. But this market will continue to be a Sell on Rises kind of market, till it closes at least above today's high of 5725-5730 now.
28 Jan: Nifty spot resistance at 5630-5655-5690-5705. Support at 5600-5585-5550-5530 - www.niftypower.com
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