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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