After the strong rally of 500+ points, Nifty has been consolidating in the broad range of 5700 to 5920. Currently, it is t the upper end of the range. We have expiry of April contracts next week, and it will be interesting to see whether it is able to breakout of the range before expiry or not.
The Options OI table is given below:
The Options OI table point to an expiry between 5800 and 6000. 5900 is the immediate battleground level between the Bulls and the Bears with a slight advantage to the Bulls. This level should resolve early next week, and we will get further clues as to whether the Nifty is going to expire near the lower end or the upper end of the trading range.
For tomorrow, the deciding levels for Nifty spot are 5865/5850 on the downside, and 5900/5910 on the upside. Below 5850, the intraday trend would remain negative, and we can see slide towards 5825-5800 on Nifty Spot. On the other hand, if Nifty spot manages to trade in positive and clear resistance of 5900/5910 on the upside, then we can see a rise upto 5930-5950. Clearing 5950, will trigger stoplosses of many Bears and will lead to a quick rally.
25 April: Nifty spot resistance at 5905-5930-5950-5980. Support at 5865-5850-5825-5800 – www.niftypower.com
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