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

Visit here for Nifty Future and Nifty Option Tips