18 March: Nifty View

Nifty Future today traded rangebound before the RBI policy announcement, making a high just near yesterday's close. Once the RBI news was out, it went for a steady slide the entire day, closing right at its important support of 5475-5480. This level should play a pivotal rolefor its movement tomorrow.

The Options OI table is given below:The Bulls covered big at 5400 PE and 5500 PE, while the Bears added good amount of 5500 CE. OI was also added at higher strikes of 5600 and higher Calls. 5500, which was the battleground level till now, now looks tilted in favor of the Bears. Tomorrow's action should confirm the direction now. 5550 now becomes the important level to watch if this market wants to go higher. On the downside, 5400-5370 is still the support zone, below which we can expect a minimum of 100 point slide in Nifty.

For tomorrow,immediate resistance for Nifty Future comes 5500-5505 level, above which it will again test today's high of 5525-5530 level. Above 5530, lies the all important resistance of 5550-5555, where scalp traders can sell with a stop and reverse trade above 5555. On the downside, immediate support for Nifty Future comes at 5450-5455 levels. If Nifty Future trades below 5450, expect 5430-5400 levels on the downside. Till it trades between 5370 to 5550, trade the ranges with small targets. Once we get a breakout from this range, large positional trades can be taken.

18 March: Nifty Future resistance at 5505-5525-5550-5605. Support at 5450-5430-5400-5370 - www.niftypower.com

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