18 Feb: Nifty View

On Thursday, Nifty started the day by giving some hopes to the Bears that a correction is coming. However, 5460 spot was held by the Bulls and once it crossed 5480, we went long for good gains of 50+ points in Nifty Future.

Their is no point in fighting the immediate trend. When the markets were falling, all Rallies were being sold into. Now, when the markets are rising, all Dips are being bought. Whenever the immediate trend changes again, these Long trades at supports will stop working. For the Bulls, 5460 Spot becomes an important level to watch for any signs of weakness in the market. Below this, 5400 would be important.

The Options OI table is given below:

The table shows Huge OI buildup at 5500 PE and below strikes. At this stage, we can only believe what we are seeing. And what we see from the Options table is absolute Bullishness. According to this table, Nifty spot should not fall below 5460. On the upside, Call Options at 5600 and above have good OI buildup. Hence, 5600 and above levels should provide some resistance. In any case, Bias would remain up till Nifty Spot is trading above 5460 and 5400 Spot.

For tomorrow, immediate resistance for Nifty Spot comes at 5560-5580 levels. Above 5580, it would attempt 5605 and the 5630, where the 200 DMA lies presently. On the downside, immediate support for Nifty spot comes at 5520-5525 levels, below which, it will again test 5505-5490 levels. As written above also, any dips towards 5460 should be utilized to buy with stoploss of 5-10 points 5460. Bearish sentiments would prevail only on a break below 5400 Spot as of now.

18 Feb: Nifty Spot resistance at 5560-5580-5605-5630. Support at 5520-5505-5490-5460 - www.niftypower.com

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