3 March: Nifty View

Nifty gave a stupendous rally on Tuesday, making up for all the Lost gains of Budget and much more. It stopped just short of tough resistance zones of 5550-5560, and looking at the world markets, it seems we might have to wait a little longer before this level is taken out. However, it did cross some important levels on the way up, and it would be interesting to see how it reacts at these levels on its way down. Whatever happens, it would be interesting times for Positional and Intraday traders both, in the coming weeks, as the market would throw several opportunities to trade.

The Options OI table is given below:

Bulls did go on a rampage, writing big number of Calls at 5300, 5400 and 5500 levels. 5300 seems to be the for this market now, up from 5200 of last series. Any close below 5300 would create panic now, and fresh positional shorts should be taken only if this levels breaks. The Bears, on the other hand, are slowly building resistances at 5600 and above, hoping to keep Nifty below its 200 DMA for now.

For tomorrow, immediate resistance for Nifty spot comes at 5555-5565 levels. Only on sustaining above these, Nifty would attempt 5600 and 5640 levels. Immediate support now comes at 5490-5480 levels. If these break, it would further fall till 5445-5420 and lower levels. As given in previous post also, as market volatility is good, buying/selling after the breakout/ breakdown would fetch better trades as compared to Buying/ Selling at Supports/ Resistances.

3 Mar: Nifty spot resistance 5560-5600-5625-5660. Support at 5505-5480-5445-5420 - www.niftypower.com

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