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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