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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