28 March: Nifty View

On Friday, Nifty Future opened gap up above its strong resistance point of 5555, moved up with low volatility above 5600, broke its previous Swing High of 5611 and then gathered momentum to make a high of 5693, before finally closing at 5674. People have started turning Bullish now. We, at NiftyPower, have already booked our Positional longs taken above 5450 on Wednesday. Now, we are watching for a confirmation of the trend up, before taking a new position.

The Options OI table is given below:

The OI table shows exactly what has happened in the market over the past three days. There was Huge covering by the Bears, at 5500 CE and 5600 CE strikes. On the other hand, the Bulls added Big OI at 5600 PE and 5700 PE strikes. While, this is definitely very Bullish, such huge addition by Bulls so near the expiry has to be watched with caution. Because on any downside movement below 5600/5570 on Nifty future now, can lead this Bulls to cover in a hurry, bringing sharp declines in Nifty. 5550, the earlier strong resistance, can now be taken as a reasonable stoploss for those holding positional longs.

For tomorrow, immediate resistance for Nifty future comes at 5695-5705 levels, trading above which it will target 5720 and 5750. Above 5750, we will see further short covering towards 5770-5800 levels. On the downside, immediate support for Nifty Future comes at 5640/5635 levels. Below 5635, it will slide down towards 5615 and 5590 levels. Below 5590, supports exist at 5570 and 5555 levels. Trade the broad range of 5550 to 5750 till we get the next breakout on Nifty future.

28 march: Nifty Future resistance at 5705-5720-5750-5775. Support at 5640-5615-5590-5570 - www.niftypower.com

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