15 Feb: Nifty View

Nifty has made a smart recovery by giving a follow through action after the bounce from Friday. At this point, when Bears are starting to turn Bulls, we would like readers to go through our Nifty Views of 9th and 11th (you can read it by clicking here and here). We had clearly warned that a bottom could be very near.

However, as traders, we should not really be looking at Tops and Bottoms, but just follow the screen. Hence, even if you sense that a bottom is near, you stay with the trend till an important levels is broken against the trend. For us, that level was 5280 on Nifty Spot, and we sent out an alert to all our Subscriber on Friday itself, that above 5280, Nifty would turn positive in the short term. Today, Nifty stands a good 190+ points from that level.

Now that Nifty has made such a staggering rally in the past two days, what we would like to see is whether the supports hold in the corrections that follow (Obviously, it won't continue to go up in a straight line). The levels that we will be watching in case of any correction are 5340 (today's open), 5280 and 5245. Ideally, we would not expect the Nifty to go below 5340.

The Options table for today is given below:

The Options table sums up the action for today. Bears covered in Bulk while the Bulls did the Opposite. 5400 and below should offer support from here on (5340) and 5600 and above are the resistance zones. 5500 is the battlezone between the Bulls and the Bears as of now.

For tomorrow, immediate resistance for Nifty spot comes around 5500 levels, above which, it will try and conquer 5520-5550 levels. On the downside, support for Nifty spot comes at 5420-5425 levels. If slips below these levels, it would test 5400-5370 levels. As Nifty is reaching overbought levels, and still below some important moving averages (trend down), we would expect some sellers to show up at higher levels. Important thing to watch is whether these sellers are able to take Nifty below its important support zone or not.

15 Feb: Nifty spot resistance at 5465-5495-5520-5550. Support at 5425-5400-5370-5340 - www.niftypower.com

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