29 March: Nifty View

Today, Nifty Future opened at 5670, made a low of 5663, made a high of 5729, before closing at 5704. Today's consolidation was healthy and expected after the steep upmove of Friday. Now, next breakout for Nifty will come only on a comfortable close above its 200DMA. Nifty is reaching overbought levels in all time frames now. Hence, expect more consolidation/ fall before further rises above its 200 DMA. The magnitude and the quality of the impending fall will give further clues about the next major move in Nifty. Till then, it is a patient wait for positional traders.

The Options OI table is given below:

We saw big addition by the Bulls at 5700 PE and 5600 PE strikes. once again, so much of overconfidence from the Bulls so near the Expiry is not healthy. The risk:reward is definitely not in favour of such big additions in Puts. On any fall below 5600 before expiry, these Bulls can panic leading to sharp falls in the Nifty. On the other hand, the Bears have expectedly covered their calls, and added small quantity at 5800 and above levels. These would be covered if Nifty closes above 200 DMA.

For tomorrow, immediate resistance for Nifty Future comes at 5725-5730 levels. This is also the VAH for tomorrow. Above these, Nifty Future will target next resistance zone 5745/5750. Above 5750, we may see swift upmove towards 5770/5800 levels. On the downside, support for Nifty Future comes at 5680 levels. Below this, it will slide towards 5660-5640 and 5615 levels. Below 5615/5610, we will see panic from the Bulls.

29 March: Nifty Future resistance at 5725-5750-5770-5800. Support at 5680-5660-5640-5615 - www.niftypower.com

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