25 March: Nifty View

Nifty future continued its upward momentum today, closing right at important resistance zone of 5550-5560. It is still within its trading range, and it is time to be cautious. Till it does not give a comfortable close above 5600-5610, be cautious at the top and bottom of the trading range. No trader wants to be caught in a wrong trade at the very top or bottom. hence, it will be wise to book some profits in longs at this juncture and re-enter if Nifty Future is able to comfortably close above 5610.

The Options OI table is given below:


The Options table was dominated by the Bulls today. Big addition was seen in 5500 PE and 5600 PE strikes. At the same time, the Bears also covered big quantity in Calls at all levels. 5500 is the new battlezone with a Positive Bias, while 5600 and above are still the resistances. We will give less importance to this data from tomorrow, as the Expiry is so near. Any big addition in OI from now on should be eyed with suspicion. Because of the recent addition, a move below 5475 in Nifty Future can now lead to the 5500 PE writers to panic. Hence, those who wish to hold longs can keep a stoploss near these levels now.

For tomorrow, immediate resistance for Nifty Future comes at 5550-5555 level. Above this, next important resistance zone is at 5575-5580, above which, Nifty future will try to break out of the range and try to conquer 5610. Expect some selling from higher levels tomorrow. On the downside, immediate support for Nifty Future comes 5525-5520 levels, below which, it will test 5505-5480/5475 levels. Below 5475, we will see some panic which can take Nifty future back to test 5450-5415 levels.

25 March: Nifty future resistance at 5555-5580-5610-5650. Support at 5520-5505-5475-5450 - www.niftypower.com

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