Sunday, July 31, 2011

1 Aug: Nifty View


Nifty formed two doji over the past two days of trading on Thursday and Friday. A doji signifies indecision between the traders. After one month of rangebound trading, Nifty looks set to enter a phase of trending move now. Whatever be its direction, it should prove to be fruitful for traders. For Option traders, a Straddle should give good returns in the August series.

The Options OI charts are given below:

The range as per the Options charts remains 5400 to 5700 as of now, with 5500 as the battlezone level between the Bulls and the Bears. There was a surprise addition of 25 lacs+ OI at 5100 PE by the Bulls on Friday. This data will have to be verified on Monday. If true, it can be considered a part of hedging strategy by the Nifty traders. Other than that, the Bulls added OI from 5000 to 5500 PE strikes, while the Bears added big amount of OI from 5500 to 6000 strikes.

For monday, immediate resistance for Nifty spot comes at 5495-5505 levels. Above that, the intraday trend can be considered to be positive, for a move to test 5545-5555 levels, with minor resistance at 5525 levels. A lose above 5555 would setup a test of 5605 again. On the downside, support for Nifty spot comes at 5470 and 5450 levels. Below 5450, Bears will be in control, and drive it down towards 5430-5390 and 5370 levels.

1 August: Nifty Spot resistance at 5500-5525-5550-5585. Support at 5470-5450-5430-5395 - www.niftypower.com

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Thursday, July 28, 2011

29 July: Nifty View

Nifty opened gap down today at 5492, traded rangebound and closed at almost the same level at 5485. With this, the July series has come to a close. It was a series with just over 200 points range for the Nifty, giving many whipsaws to traders along the way.

The Options OI charts are given below:


The series start with a range of 5400 to 5700 as the most important levels to start, and 5600 as the battlezone level between the Bulls and the Bears. M of the OI at 5500 CE level was added by the Bears today , as Nifty broke the level of 5500. The Bulls added more than 15 lac+ OI at 5400 PE. Hence, 5500 is the immediate levels to be resolved by the Nifty. The overall range as of today is 5400 to 5700.

For Tomorrow, immediate resistance for Nifty spot now comes at 5510 and 5525 levels. Above this, it will attempt its strong resistance zone of 5540-5550. Above 5550,next strong resistance zone will 5580-5605. On the downside, support for Nifty Spot comes at 5470 levels. Trading below this, the intraday remain will remain Bearish and Nifty will test its lower support levels of 5435 and 5370 levels.

29 July: Nifty Spot resistance at 5510-5525-5550-5585. Support at 5470-5435-5410-5370 - www.niftypower.com

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Tuesday, July 26, 2011

27 July: NIfty View

In Yesterday's Nifty View, we had mentioned that though the technicals look good for a breakout right now for the nifty, it should respect the supports in case of any downmove to give more credibility to the upmove. The RBI played spoil sport today, and Nifty fell more than 100 points, to close at 5572 today. It broke the supports that it had formed on its way up. These levels would now be the resistances going up. On the downside, previous low of 5530 and 5495 are the supports to look out for. Below these. there will be bloodbath.

The Options OI Charts are given below:


Todays move is is a good reminder why to not pay too much importance to the Options data in the last few days of the expiry. Todays move was exactly opposite to the yesterday. The range for expiry as per the Options table is back to 5500 to 5700 now.

For tomorrow, resistances to look out on the way up for Nifty Spot are 5595-5610-5635 and 5665 levels. Immediate support for Nifty spot comes at 5550 levels. Below this level, Bears will target 5530 and 5495 levels. Below 5495, there will be further panic among the Bulls. Trade as per the levels and momentum indicators for tomorrow.

27 July: Nifty spot resistance at 5595-5610-5635-5665. Support at 5550-5530-5495-5450 - www.niftypower.com

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Monday, July 25, 2011

26 July: Nifty View

After 11 trading days, Nifty has broken out of the falling trendline again. Will it sustain this time and head for 200 DMA? Technicals are definitely better this time, with the Daily RSI and stochastics well positioned to sustain an upmove. However, Nifty should respect the supports that it has formed on the way up. It did not do so last time. Only if it does so this time, will this upmove be more credible. The Options Open Interest data would give more clues a crucial junctures.

The Options OI charts are given below -



Although we always say that the Options Data so near the expiry is not reliable enough, we have to see it in light of the current technicals. The Bulls have added huge amount of OI at the 5600 PE and 5700 PE strikes. After today's move, the Option OI charts also indicate a breakout from the range of 5500 to 5700. The new range being established now is 5600 to 5800, with 5700 being the centrepoint. 5600-5620 would be important levels for the Bulls to save, in the event of any downmove now.

For tomorrow, resistance for Nifty spot comes at 5700-5705 levels. Above this, it will encounter its strong resistance zone of 5730-5760 levels. Trend will remain positive as long as it stays above 5665-5670 levels tomorrow. On the downside, support for Nifty spot comes at 5665 levels. Below this, it will test support levels of 5640 and 5615 levels. A close below 5615 would put this breakout in question again.

26 July: Nifty Spot resistance at 5705-5730-5760-5785. Support at 5665-5640-5615-5585 - www.niftypower.com

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Friday, July 22, 2011

22 July: Nifty View

In yesterday's Nifty View, it was given that Nifty will face resistance at 5580 level in case of any recovery. Nifty found exact resistance at that level, making a high of 5578, before falling and breaking the support of 5550. The series of July has been an options writers dream, with a range of just over 200 points, and it looks like we will have to wait till the expiry week before any kind of trend emerges.

The Options Open Interest charts are given below:

The Bears were again hyper active today, adding big amount of OI in 5500 PE, 5600 PE and 5800 PE strikes. The Bulls were subdued as yesterday. The Options table tells the story of Nifty for this month. The OI at 5500PE, 5600 CE, 5700 CE and 5800 CE are all reaching 1 Crore+ mark. It will be very difficult for Nifty to move beyond the range of 5500 to 5600 now. Upsides may be limited above 5600 also, however, a close below 5500 will open the floodgates. What this Options table also indicates, is some volatile moves within the short range. This is a market more suited for the day traders, rather than the Positional traders.

For today, immediate resistance for Nifty spot comes at 5565-5580 levels. Above this, it will again target 5610 and 5635, where it is expected to meet some selling from the Bears. On the downside, support exists at 5550. Bears will be active below this level to drive Nifty down towards 5530 and 5495 levels.

22 July: Nifty Spot resistance at 5565-5580-5610-5635. Support at 5550-5530-5495-5445 - www.niftypower.com

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Wednesday, July 20, 2011

21 July: Nifty View

Nifty today opened up on global clues, and started declining immediately. All attempts for a recovery were met with selling today. Yesterday, it had closed above 5600 after an effort of 5 days, but could not sustain above it. If it is not able to do so in coming days, it will fall under its own weight.

The options OI charts are given below:

As in Nifty, the see saw in Options Open interest data continues too. If yesterday belonged to the Bulls, today it was Bears all the way. huge amount of OI is added from 5500 CE to 5800 CE strikes. The Bulls covered almost at every level, with the most being from 5500 PE to 5700 PE strike. However, this still does not change the range for July. July month has mostly traded within the range of 5500 to 5700, and this continues to be the range suggested by the Options Charts. 5600 is still the 50:50 level. 5700 and 5800 become very strong resistances now, with OI around 1 Crore at these strikes. Similarly, 5500 is the ultimate support level.

For tomorrow, Nifty spot will face resistances at 5580-5610 level in case it attempts any recovery. On the downside, immediate support for Nifty spot comes at 5550 level. Below this, Nifty looks to set to test previous low of 5495 and lower levels. Trade as per the levels.

21 July: Nifty spot resistance at 5580-5610-5635-5665. Support at 5550-5520-5495-5455 - www.niftypower.com

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Tuesday, July 19, 2011

20 July: Nifty View

Today, Nifty has finally closed above 5600 after consolidating below it for last 5 trading sessions. Is this the resumption of the uptrend that we witnessed from 5196? IT can be. But rather than speculating about where Nifty would go, just trade with the levels and everything else should be fine. 5550 becomes the important support level now, below which Nifty would straight away go to test 5495 level. On the upside, resistance area to watch is 5660-5675, crossing which, Nifty will give an indication of further upmove towards higher levels.

The Options OI charts are given below:

The Bulls had shown confidence yesterday, which they followed up today by adding open interest at 5500-5700 PE strikes. The Bears hardly did anything yesterday. Today, they covered OI at 5400-5600 CE strikes, while adding big quantity at 5800 CE strike. After today's move, the range for the Nifty remains at 5500 to 5700, with 5600 as the battlezone level. However, the OI of 1.15+ Crore at 5500 makes it as a strong support level, as well as a great concern level for the Bulls. This has to be protected now, else there will be panic all around.

For tomorrow, immediate resistance for Nifty Spot comes at 5620-5625 level. If manages to trade above this in morning trades, Nifty will head higher to test strong resistance levels of 5650-5665 and 5685 levels. Above these, it will trigger another round of short covering challenging the recent tops. On the downside, support for Nifty Spot now comes at 5580-5575 levels. Below this, it will again test 5550 levels. break of 5550 will be the first indication of downmove starting, to be confirmed by a break of 5495.

20 July: Nifty Spot resistance at 5625-5650-5665-5685. Support at 5575-5550-5520-5495 - www.niftypower.com

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Monday, July 18, 2011

19 July: Nifty View


In Yesterday's Nifty View, immediate resistance for Nifty Spot was given as 5595-5600. The high of the day was 5596. Immediate support was given as 5550-5540. The actual low of the day was 5550. So what does it prove? Nothing - actually. It just goes to show that there is no magic in predicting levels. One should just be aware of the levels, where to initiate the trade. The rest of the things fall in place by itself.

Nifty traded in a rangebound manner, between the first resistance and first support level, for throughout the day. The levels that were relevant yesterday, remain the same today also, 5550 is the immediate support for Nifty Spot. A close below this would shake out some of the weak Bulls. On the other hand, till it does not close above 5600 (the level of the year), bias remains to be negative.

The Option OI charts are given below:


Yesterday's Options charts showed confidence from the Bears and very little action from the Bulls. Well, it was the opposite today, withe the Bulls doing majority of the action, adding OI at 5400 PE, 5500 PE and 5600 PE strikes. The Bears on the other, did very little at the end of the day. Though technically, Nifty looks biased to the downside till it is below 5600 level, from the options table, it is still in the range of 5500 to 5700. The strongest support has to be 5500, with over 1 Crore of OI, and if we do break it, then there will be real panic among the Bulls, which can see a straight 100+ point of downfall. On the upside, resistance levels remain at 5700 and 5800, with 5600 as the battlezone levels between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty spot comes at 5595-5600 levels. Above this level, Bulls will be in control for the day, taking Nifty to test higher levels of 5625-5660 and 5685 levels. On the downside, strong support for Nifty Spot comes at 55505540 levels. If Nifty fails to hold this level, we will see some panic among the weaker Bulls, which can take Nifty to test 5500 levels very quickly. If 5500 also gives away convincingly, there will be real panic among the Bulls. However, from the Options data, this level should not give way so easily.

19 July: Nifty spot resistance at 5595-5625-5660-5685. Support at 5545-5520-5495-5455 - www.niftypower.com

Sunday, July 17, 2011

18 July: Nifty View

Two days in a row, Nifty tried to move and close above 5600 now. But on both the days, it met determined sellers, who pushed it below 5600 and closed below that also. Still, this move of Nifty can only be termed as consolidation/ correction for the rise from 5200 to 5700+, till the time Nifty is staying and trading above 5500. Only if Nifty closes below 5500, would any momentum come on the downside.

The Option Charts are given below:


The range, as per the Options charts, remains the same, i.e., 5500 to 5700. From the Option Charts also, 5500 is the most important support, with over 1 Crore of OI at 5500 PE strike. 5700 is the resistance, while 5600 is the battlezone level between the Bulls and the Bears. The Bears added a lot of OI at 5600 CE and 5700 CE strikes on Friday, while the Bulls were subdued. How these Bulls react on any downmove towards 5500, will give clues as to the next move of Nifty.

For Monday, immediate resistance for Nifty spot comes at 5595-5600 levels. Above this level, Bulls will be in control for the day, taking Nifty to test higher levels of 5625-5660 and 5685 levels. On the downside, strong support for Nifty Spot comes at 5550.5540 levels. If Nifty fails to hold this level, we will see some panic among the weaker Bulls, which can take Nifty to test 5500 levels very quickly. If 5500 also gives away convincingly, there will be real panic among the Bulls. However, from the Options data, this level should not give way so easily.

18 July: Nifty spot resistance at 5595-5625-5660-5685. Support at 5545-5520-5495-5455 - www.niftypower.com

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Friday, July 15, 2011

15 July: Nifty View


On Thursday, Nifty opened near 5570 levels, steadily moved down towards 5541, and then staged a smart recovery, posting a high of 5653, before sliding swiftly in the last hour of trade to close at 5586. At one point during the day, it looked like it will move and close above 5630, which would have been a very Bullish signal. Now, a second time failure to close above 5600, does make this uptrend a doubtful one. A close below 5500 would confirm it. Till then, it better not to be biased.

The Options OI charts is given below:


The Options OI charts for today looks like as if the last one hour of trade was not there at all today. It shows quite a Bullish picture for today, with the Bulls adding big amount of OI at 5600 PE and 5700 PE levels. The Bears added some amount at 5600 CE. 5500 PE is the strike now, which has the highest open interest,nearing 1Crore. This level will be very difficult to break for the Bears. But if they do and if the writers of 5500 PE panic, then this fall will be a real one for sure. Similarly for the bulls, 5700 and 5800 present a huge wall of resistance, which will be very difficult to break. Overall, even though technical indicators may be pointing to downside, from the options point of view, the range of 5500 to 5700 remains intact, with 5600 as the battlezone level between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 5600 levels. Above this, next strong resistance zone comes at 5625-5635 levels. Above 5635, Bulls will again become active to push nifty towards 5660, 5680 and higher levels. On the downside, immediate support for Nifty Spot comes at 5580 levels, below which, strong support lies at 5550/5545 levels. Below 5545, Bears will have an upper hand, and some panic can take Nifty towards recent lows of 5495 level also.

15 July: Nifty Spot resistance at 5600-5630-5660-5680. Support at 5580-5545-5520-5495 - www.niftypower.com

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Tuesday, July 12, 2011

13 July: Nifty View


Nifty, finally broke 5610, and gave us the next 100+ points down as expected. At this juncture, we would like to bring attention to our post of 8 July. (click here to read it). Nifty had broken above trendline resistance that day, and everyone was turning Bullish. That was the first sign of a correction coming. Nifty corrected more than 200+ points from the highs of that day. Now, when after today's move, we see people turning Bearish again, we have already booked our Positional shorts and waiting for the next opportunity. We would still consider this fall as a correction to the rise from 5195 to 5740+. Where this would end is anybody'd guess. Wait patiently for the first signs of the end of this correction, before taking any Long position now.

The Options OI Charts are given below:
The Options charts show big addition of OI at 5500 CE and 5600 CE by the bears. The Bulls also showed some courage, by adding OI at 5500 PE, while covering at 5600 PE. The data shows some unusual activity at 5300 PE and 5800 PE strikes. This data has to be verified before taking any conclusion on the same. Overall, the range from Options Analysis is still 5500 to 5700, with 5600 being the battlezone between the Bulls and the Bears.

For tomorrow, watch the level of 5525 Nifty spot in the morning trades. Staying above this, Nifty spot will attempt higher levels of 5550 and 5580, where again it will face selling pressure. On the downside, support for Nifty spot comes at 5495 level. If moves below that, shorts can be opened with stoploss above 5525 level. Lower level supports come at 5455 and 5415 levels. Overall, till Nifty stays below 5550/5560, it will remain a Sell on Rises for tomorrow.

13 July: Nifty Spot resistance at 5525-5550-5580-5605. Support at 5495-5470-5455-5415 - www.niftypower.com

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12 July: Nifty View


On Monday, Nifty closed at 5616, just above its important support zone of 5605-5610. However, it did close below some important supports, which will act as resistance in case of any upmove now. In Yesterday's nifty view, it was advised to sell on rallies. From now on, Bears will have upper hand, till the time Nifty Spot trades below 5660. Hence, Sell on Rallies continues to be the mantra, till Nifty does not give us a closing above 5660.

The Options OI charts are given below:

The Options charts are not very comforting for the Bulls. Bears added big amount of shorts at 5700 CE and 5800 CE, while the Bulls covered up at 5700 PE and 5600 PE levels. 5500 to 5700 is clear range evident from the Options OI data now. 5600 is the battlezone level between the Bulls and the Bears, and neither side will give it up easily.

For tomorrow, watch the level of 5600 on Nifty Spot on the downside. Below this, nifty will slide towards lower supports of 5580 and 5550. These supports should not be easy for it to break, but if it does, then we may see some panic among the Bulls. On the upside, resistance for Nifty Spot now comes at 5630-5640 zone. Above this, it will target next resistance level of 5660 and 5680 levels. As given above , mantra is to Sell on Rallies at resistance levels, till Nifty gives us a closing above 5660 now.

12 July: Nifty Spot resistance at 5635-5660-5680-5705. Support at 5600-5580-5550-5515 - www.niftypower.com

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Sunday, July 10, 2011

11 July: Nifty View

On Friday, Nifty opened at 5736, tested it support of 5690, recovered till 5726, and finally slid in the last half hour to close at 5652. The last 30 mins. of trade on Friday would cause a concern to a lot of Bulls. Nifty has closed right at its important support of 5650. If no buying support comes at Monday, Nifty may well be headed towards sub 5600 levels. Also, Nifty after having broken above the falling trendline, has again fallen below it. If it now breaks down below 5610-5620 spot, the earlier breakout would be considered a false move.

The Options OI charts are given below:

Finally, in this series, the Bears showed a lot of confidence and Shorted big amount of 5700 CE and 5800 CE. 5500 to 5800 is the range suggested by the Options Charts as of now. The levels of 5600 and 5700 are the ones at which the Bulls and the Bears are fighting it out. Hence, a breakout/ breakdown from the range of 5610 to 5720 now should easily give the next 100+ point move in Nifty.

For Monday, immediate resistance for Nifty spot comes at 5670 levels. If trades above this, it will try to test strong resistance zone of 5690-5700 level. If it does move above 5700, it will try to retest its 200 DMA again. However, till it does not trade above 5700, the Bears will have an upper hand, and Sell on Rallies should be the mantra for the Day Traders. On the downside, support for Nifty Spot comes at 5630/5625 level. If it moves below this, it will test 5610 level. As written earlier, below 5610, this upmove might be in danger. Lower supports for Nifty below 5610 are 5580 and 5550.

11 July: Nifty Spot resistance at 5670-5695-5725-5740. Support at 5625-5610-5580-5550 - www.niftypower.com

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Thursday, July 7, 2011

8 July: Nifty View


On Thursday, Nifty opened at 5634, and steadily moved up to conquer resistances of 5660, 5695 and 5720. Today was the sort of day, when traders have to identify the trend early and get in as soon as possible, otherwise they are left fighting the trend all the time. Nifty has cleared the falling trendline as shown in char now. Now it should maintain above that line for this breakout to be a valid one. However, it is also reaching overbought levels, and it will be interesting to see how far more it can go. By clearing 5700, it also means that a lot of Bears will be becoming Bulls from tomorrow. Further, we are approaching the 200 DMA once again, which will be an important resistance. At NiftyPower, this is the time that we would be looking to book out of positional longs, taken at 566o/5665 Future levels.

Lets see what the Options Charts have to tell us:


Although Nifty closed above 5700 today, and despite huge addition at 5700 PE by the Bulls, the OI of 5700 CE is still more than 5700 PE. We have two levels of contention right now. They are 5600 and 5700. Tomorrow's action should throw more light as to which camp is becoming weak at these levels. With all the above factors mentioned above, and the open interest chart, it does seem difficult for Nifty to go much higher from here.

For tomorrow, immediate resistance for Nifty Spot comes at5745 level. If it trades and maintains above that level, it will head towards higher level 5785 and 5800 level. On the downside, now important supports come at 5715/5720 level. If it goes blow this, supports are 5685-5650 and 5630 levels.

8 July: Nifty Spot resistance at 5745-5760-5785-5800. Support at 5715-5685-5650-5630 - www.niftypower.com

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Wednesday, July 6, 2011

6 July - Nifty View


Today was a rangebound day for Nifty. it opened near our resistance of 5660, could not cross it, broke support of 5630/5635 and went near lower support of 5605 (low 5612). it then continued to trade between the support of 5605 and resistance of 5635, and closed at 5631. After the breakout above 5605, Nifty has been consolidating for 3 days now. A decisive move past the range of 5600 and 5700 should set the ball rolling for the next 100-150 points now.

The Options OI Charts are given below:


The Options OI charts tell the same story as yesterday. 5600 is the battlezone level between the Bulls and the Bears. There were no major additions in OI today, in either the Puts or the Calls (except for 5500 PE by the Bulls). This indicates that both of them are waiting for that decisive move above/ below 5600, before strengthening their positions. The Options table indicate a range of 5500 to 5700 as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5630/5635 level. If it sustains above this in the morning, it will head towards 5660/5680 and 5705 levels. Above 5705, it would be panic time for the Bears. On the downside, immediate support for Nifty Spot comes at 5605-5615 level. Below this, Bears will have upper hand. Lower supports/ targets below 5605 for Nifty are 5580-5560 and lower levels.

6 July - Nifty Spot resistance at 5635-5660-5680-5705. Support at 5605-5580-5560-5535 - www.niftypower.com

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Monday, July 4, 2011

5 July: Nifty View


On Monday, Nifty opened at 5679, slid towards 5633, and then traded rangebound to close at 5649 level. It formed an "Inside Day" in the process. (Inside Day - "A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day" - Source - Investopedia). Tomorrow's movement now becomes crucial for this uptrend. If, tomorrow Nifty moves below 5633, the low of today, it might be the first sign of correction for this rise. A close below 5600/5580 would confirm it. On the other hand, a move above today's high of 5679, would set it up for 5703, and higher levels.

The Options Charts are given below:

An Inside Day signifies indecision between the Bulls and the Bears. And the Option Writers loves indecision. Calls and Puts were added by both, the bulls and the bears. 5600 - which is the Level of the Year, is still the deciding factor as of now. On break of "Inside Day" range of today, how the writers at 5600 reacts, would give us clue to the next probable movement in Nifty. 5500 and below are the supports, while 5700 and above are the resistances.

For tomorrow, immediate resistance for Nifty spot comes at 5660 level. Above this, it will retest Monday's high of 5675/5680 level. Above 5680 , it will go towards 5705 level, which is crucial level to watch. On the downside, support for Nifty Spot comes at today's low of 5630/5635 level. Break of this, will lead Nifty to 5605-5580 and 5525 level.

5 July - Nifty Spot resistance at 5660-5680-5705-5720. Support at 5630-5605-5580-5545 - www.niftypower.com

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Sunday, July 3, 2011

4 July: Nifty View


In the post of 27th June, the importance of 5520 on Nifty was mentioned, above which it was expected to test upward resistances of 5605 and then the falling trend line (refer the chart of 27 June by clicking here. Nifty has subsequently cleared 5520 and 5605. However, on Friday, it failed to cross the falling trend line and fell nearly 100 points from there, before recovering a little and closing at 5624. Bulls will be watching the level of 5605 (breakout point) and 5580 very closely now. A close below 5585 would be first indication of caution for the Bulls now. Till this level is protected, consider the trend to be Up only, and try to buy on dips. If Nifty does and break below this level, we would prefer to be on the short side and consider this breakout to be a False Move, till it again gives a closing above 5610. On the upside, the falling trend line is the immediate reference for a resistance now.

The Options Charts are given below:


It is early days to start taking cues from the Options charts. However, the initial activity shows support for Nifty at 5400 and below levels. 5500 and 5600 are the battlezone levels between the Bulls and the Bears as of now. Considering the fact that Nifty is above both these levels as of now, the advantage definitely lies with the Bulls. 5700 and above are the resistances.

For Monday, immediate resistance for Nifty spot comes at 5635/5640 levels. Above this, it will test upside resistance of 5655, 5675 and 5705 levels. As written earlier too, trading above 5705 would put the Bears in panic mode. On the downside, immediate support for Nifty Spot comes at 5605/5610 levels. Below this, it will test the importance support zone of 5580/5585. Break of 5580 can bring 5525/30 in quick time, with minor support at 5550 level.

4 July: Nifty spot resistance at 5640-5655-5675-5705. Support at 5605-5580-5550-5525 - www.niftypower.com

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