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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