16 March: Nifty View

We have had some tragic events in Japan, the repercussions of which, are yet to be seen. This sort of News puts all kind of traders at the same level. This is because the News is actually News to Everyone, whether big Fund Managers, Insiders or the Retailers. These are unusual times, and normal market activity should not be expected during unusual times. The Prudent thing to at this time is properly reduce the trading volumes, to limit the risk that one has at any point in such a market.

As market by the rectangle in the chart above, Nifty has broadly been trading in a range of 5400 to 5600. This range is also suggested by the Options table given below:
Lots of Puts were covered today, while the calls did not that much. This can be attributed to the high volatility amid news flow, which is keeping the Option writers a bit muted in action. 5500 is still the battlezone for the Bulls and the Bears, although with a slight negative bias. 5400 and below are the strong supports, while 5600 and above are the resistances.

For tomorrow, immediate resistance for Nifty Future comes at 5475-5485 zone. Above this, it will again target today's highs of 5505-5520 levels. Staying above 5520 for few minutes can trigger a fresh round of short covering, which can take Nifty future to the upper end of the trading range. On the downside, support for Nifty Future comes at 5440-5435 level. If moves below this, Nifty future will target 5415/5405 and 5375 levels. Below 5375, it may lead to panic among the 5400 PE writers, and some serious slide may start. Note that even in case of a Gap Up or Gap down above/ below these level, keep in mind the numbers for your trading.

16 Mar: Nifty Future resistance at 5480-5505-5520-5560. Support at 5440-5415-5405-5375 - www.niftypower.com

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