24 May: Nifty View

Nifty breaks down again below 5470/5450 and straightaway tested 5370 today. These levels will act as strong resistances on the way up now. Do remember that 5400 to 5600 has been well traded now. We have broken this range on the downside. This range should be conquered in one big and swift move, otherwise the Bulls have no hope. The Bears will keep Selling Rallies in this market till 5600 is conquered.

The Options OI table is given below:

We saw 12 lacs+ OI addition at 5500 PE on Friday. All of that was covered today, and some more. OI also decreased by big margin in 5600 PE, indicating that the Bulls have given up on this level, at least for this expiry. On the other side, the Bears added big at 5400 and 5300 CE levels. There was OI addition at 5300 PE also. Action at 5300 PE and 5300 CE will give indication of Nifty's movement tomorrow.

For tomorrow, immediate resistance for Nifty Spot comes at 5390/5395 level. Above this, it will head towards 5420/25 and then 5450 levels, where again, it will face stiff resistance. On the downside, support for Nifty exists at5370 levels. Below this, it will slip towards 5355 and 5330 levels. For the day, market will be Bearish till it stays and trades below 5420 level.

24 May: Nifty Spot resistance at 5395-5425-5450-5480. Support at 5370-5355-5330-5300 - www.niftypower.com

Visit here for Nifty Option Tips