21 Feb: Nifty View

On Friday, Nifty opened up and took a shot at 5600, before sliding 150+ points and closing right at our indicated support of 5460. In the process, it has formed a Bearish Engulfing pattern on Daily Charts. Now, the low of 5440 formed on Friday would become an important level, and probably signal a short term trend change if Nifty trades below this on Monday.

The options OI table is given below:

5500 was the level for most of the action for the Bulls and the Bears. While the Bulls covered more than 30 lacs+ 5500 PE, the Bears added approx. 15 lacs 5500 CE. This levels is the new battleground for the Bulls and the Bears with a slight advantage to the Bears. 5400 and below are the present supports, while 5600 and above are the resistance zones for now. As Expiry is nearing, we would stop giving importance to the change in OI from next week. From today's data, 5370 to 5600 seems to be the range for Nifty Spot for Expiry.

For Monday, immediate resistance for Nifty spot now comes at 5495-5505 levels. If it manages to trade above 5505 for some time, it will again head higher towards 5525-5555 and 5600levels. On the downside, immediate support for Nifty Spot comes at 5440-5435 levels. Below 5435, it will test 5415-5370 and 5340 levels. As it is expiry week, we might see some Volatility next week. Trade the Breakout/ Breakdown from important Support and Resistance levels.

21 Feb: Nifty Spot resistance at 5495-5505-5525-5555. Support at 5440-5415-5395-5370 - www.niftypower.com

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