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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