29 June: Nifty View

Nifty opened Gap Up today, made a high of 5558, and then slid down to make a low near 5496, before recovering again to close at 5542. After two days of dominance from the Bulls, today was an expected consolidation day. Volatility is on the rise after being on the lower side for the entire month of June. Higher volatility is always very good for intraday and short term traders.

The Options Charts are given below:


Addition of OI does not matter much, so near to the expiry. If we look at next months OI charts, we find that the Bulls are getting aggressive right from the start of the series, building OI from 5500 PE and below strikes. The Bears are more subdued, having largest OI at 5600 CE strike, both for June and July series. This level is the level of the year, and it will take a herculean effort from the Bulls to break and close above it. From the Options Charts of June series, 5500 to 5600 seems to be the expiry range now.

For tomorrow, immediate resistance for Nifty Spot comes at 5545-5550 levels. If stays above it, Bulls will remain in control, and try to test higher level resistances of 5580 and 5610. Only above 5610, real Bull action will be seen. Till 5610 is not breached, anytime fast fall can happen. Hence, have strict stoplosses in all long positions. On the downside, support for Nifty Spot comes at 5515/5505 levels. Below this, it will slide towards the breakout zone of 5475/5480 and then 5445 and 5390 levels.

29 June: Nifty Spot resistance at 5550-5580-5610-5630. Support at 5510-5475-5445-5390 - www.niftypower.com

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28 June: Nifty View

In Yesterday's Nifty View, it was given to create Longs if Nifty slides towards 5420-5430 level. Thanks to the global cues, Nifty gave that golden opportunity to go long at the open. The low recorded was 5434! There is another lesson here for those who see the World markets and try to trade the Nifty. The correlation between different markets is a complex one, which cannot be gauged just by seeing whether it closed in the Red or Green. It is a wasteful exercise. Hence, better keep your analysis simple and follow your trade plan with strict money management. That is all that is needed for making money!

The Options OI Charts are given below:



The Options Charts show the Bulls on rampage as of now. Since expiry is very near, we will not be giving much importance to the OI data now. It is sufficient to know that 5400 to 5600 is the range suggested by the Options table as of now. Also, now that the Bulls have taken charge, they should cause some more pain to the Bears till expiry. Any turnaround, if any, is expected to happen on or after expiry day only.

For tomorrow, immediate resistance for Nifty Spot comes at 5545/50 area. Above this, expect it to remain positive and test higher levels of 5580-5610. Nifty is entering the earlier strong resistance zone of 5580-5610 now. Hence, be careful at higher levels. Prefer to go long near lower supports, rather than upper resistances now. On the downside, support for Nifty Spot comes at 5510/5505 level. If moves below this, it will go on to to test today's breakout level of 5480/5475 and 5435 below that.

28 June: Nifty Spot resistance at 5550-5580-5610-5630. Support at 5510-5475-5450-5435 - www.niftypower.com

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27 June: Nifty View

On Friday, Nifty opened with a Gap Up and continued its rise till the end of the day, leading to heavy short covering from the bears. In the process, it cleared many crucial resisatances, which will act as supports now during any pullback. On the upside, it is now within striking distance of next major resistance at 5515-5530 levels, above which, a test of the all important 5605 is inevitable.

The Options OI data is given below:


As expected on such an up day near to expiry, there was no addition in any of the Calls from the Bears. While the Bulls went on the rampage with Puts of 5300, 5400 and 5500 Strikes. Total of 80 lacs+ addition in these Puts was done by the Bulls. While such exuberance so near the expiry is definitely questionable, however, if Nifty now manages to hold 5400, it might well mean that the short/medium term bottom is in, and we might be headed to much higher levels from here on.

For tomorrow, the first resistance for Nifty spot comes at 5475 level. Staying above this, it will target strong resistance zone of 5515-5530. As stated earlier, above 5530, we should get another round of panic short covering from the Bears, till 5600 levels. On the downside, support for Nifty Spot comes at 5420-5430 level. If it slides till this level, it can be used to build positional longs with stop and reverse below next support level of 5370-5375.

27 June: Nifty Spot resistance at 5475-5515-5535-5580. Support at 5420-5390-5370-5345 - www.niftypower.com

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June 3: Nifty View

On Thursday, Nifty opened gap down below 5550, tested 5520 and then recovered to close at 5553+. Once again, it reacted in a similar manner near 5600 as it had done on previous occasions, by giving a big Gap-Up/ Gap-Down. This level is becoming the most important level of 2011. For now, 5585 and 5615 are the next big resistance for the Nifty, while 5520 and 5500 are the supports. Any move outside of these levels should be considered a breakout/ breakdown.

The Options OI data is given below:


The Options OI table is quite clear as of now, and substantiates our levels given above. 5500 and below are the supports, while 5600 and above are the resistance zones. The range given by option table is the 100 point range between 5500 and 5600. However, a closer look at the numbers will show that there is not much of a difference between the Put and Calls of 5500 and 5600 strikes. The difference can vanish in one day, if Nifty break out of the range. Seems like the option writers are also waiting for more confirmation.

For tomorrow, upside resistance for Nifty spot comes at 5585 level. Above this, it will head for 5600/5630 levels. Above 5630, we will see some panic among the Bears, and a quick short covering rally. On the downside, support for Nifty spot comes at 5530/5520 levels. Below this, we will see a test of 5505 level. If it trades blow 5505/5500 for some time, Bears will taste blood again, and will try to drag nifty to 5480, 5440 levels tomorrow itself. Intraday traders can trade the breakout/ breakdown as per the levels given.

3 June: Nifty spot resistance at 5585-5600-5630-5660. Support at 5520-5500-5480-5440 - www.niftypower.com

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2 June:Nifty View

On Wednesday, Nifty traded in a rangebound manner, testing 5600, but was unable to cross and close above it. The importance that this level has, can be gauges from the circled regions in the chart. Since the beginning of this year, Nifty has given big moves on being resisted and supported at this level. This might be the right time to buy an Option Straddle, as volatility is expected to increase near this level.

The options OI data is given below:

The Options OI data indicate a range of 5400 to 5600 for the Nifty. There was no significant activity by the Bears today on the Calls side. The Bulls added 9lacs+ OI at 5500 Put. On any downmove and test of 5500, the activity 5500 PE will now show the true strength of these bulls. For trend change, a move past 5610 on the upside and 5430 on the downside can be considered to be the breakout/breakdown levels.

For tomorrow, immediate resistance for Nifty spot comes at 5605 and 5625 levels. Sustaining above these, it will force the Bears to cover and test higher levels of 5660-5695 levels. On the downside, support for Nifty spot comes at 5575 levels. Below this it will first fall towards 5550 level. Below 5550, Bears will have upper hand for the day, and we may see a test of 5500.

2 June: Nifty spot resistance at 5605-5625-5660-5695. Support at 5575-5550-5530-5500 - www.niftypower.com

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1 June: Nifty View

Today, nifty future opened up above its resistance zone of 5480-5485, tested it during intraday and then shot up to reach 5570+ levels. With this, we closed our Positional Long trade today. gaining 100+ points. The month of May has been very good for us, and we hope to continue with similar performance in future. BTW, the update for positional longs was also given free on Twitter and Smsgupshup. Readers who would wish to receive our updates on their mobile can join our group on any of these websites.

The Options OI Table is given below:


The Options OI table indicate support for th Nifty at 5400 and 5300 levels, while resistance is at 5600 and above levels. The Bulls added Puts today at 5300 to 5600 strikes, while the Bears covered Calls at 5500 levels, and added some 5600 and above levels. 5500 is the battlezone level, with a positive bias for the time being.

For tomorrow, immediate resistance for Nifty spot comes at 5580-5585 levels. Above this, it will target the next strong resistance zone of 5615-5630. A close above 5630 will arrest the downtrend for the time being. On the downside, support for Nifty spot now comes at 5550/5555 levels. If it slips below this, it will test lower supports of 5505-5490 and 5470 levels. Till the time it stays above 5430 for now, dont be too Bearish.

1 June: Nifty Spot resistance at 5585-5615-5635-5660. Support at 5550-5505-5490-5470 - www.niftypower.com

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