After breaking down below 5470, Nifty gave a good bounce on Friday, to enter back into the trading range. It closed very near to the breakdown level. The closing price of Monday becomes important to watch now.
The Options OI table is given below:
The Options OI data indicate 5400 to 5600 as the trading range. 5400 and below are the supports, while 5600 and above are the resistances. 5500 is the battlezone level between the Bulls and the Bears. On Friday, there was big addition of 12 lacs+ OI at 5500 PE and 4 lacs+ OI at 5600 PE. If this show of confidence is anything to go by, then nifty should have expiry on a Bullish note.
For tomorrow, immediate resistance for Nifty spot comes at 5495 level. Above this, it will target Friday's high of 5520 and then 5555 levels. Above 5555, there will be another round of short covering, till 5600 levels. On the downside, immediate support for nifty spot comes at 5465 levels. Below this, it will fall towards 5445-5425 levels. Below 5430, we will see some panic among the the 5400 PE writers, who can drag the index down towards 5395-5370 and below levels.
23 May: Nifty spot resistance at 5495-5520-5555-5595. Support at 5465-5445-5425-5395 - www.niftypower.com
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