22 March: Nifty View

Nifty has given its second consecutive close below 5400 today. The downward momentum did not come below 5400, as expected. Probably, tomorrow may be the last chance for the Bulls to stage a recovery above 5400 now. Otherwise, the market should start falling under its own weight now.

The Options OI table is given below:

5400 is clearly the battlezone at the moment. Most of the OI increase happened at this level. The PE's still outnumber the CE's as of now. Soon, this level should resolve itself and give clues to further direction. 5500 and above is the resistance, while 5300 and below are the supports.

For tomorrow, immediate resistance for Nifty Future comes at 5410-5415 levels. Above this, it will target today's VAH of 5425-5430. If manages to cross and sustain 5430, we will see some quick movement towards higher levels of 5450/5480/5500. On the downside, support for Nifty Future comes at 5350-5360 levels. Break of 5350 would force the 5400 PE writers to cover, which will take Nifty to 5330-5300- levels.

22 Mar: Nifty future resistance at 5410-5425-5450-5480. Support at 5360-5330-5300-5270 - www.niftypower.com

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