19 July: Nifty View

In Yesterday's Nifty View, immediate resistance for Nifty Spot was given as 5595-5600. The high of the day was 5596. Immediate support was given as 5550-5540. The actual low of the day was 5550. So what does it prove? Nothing - actually. It just goes to show that there is no magic in predicting levels. One should just be aware of the levels, where to initiate the trade. The rest of the things fall in place by itself.

Nifty traded in a rangebound manner, between the first resistance and first support level, for throughout the day. The levels that were relevant yesterday, remain the same today also, 5550 is the immediate support for Nifty Spot. A close below this would shake out some of the weak Bulls. On the other hand, till it does not close above 5600 (the level of the year), bias remains to be negative.

The Option OI charts are given below:


Yesterday's Options charts showed confidence from the Bears and very little action from the Bulls. Well, it was the opposite today, withe the Bulls doing majority of the action, adding OI at 5400 PE, 5500 PE and 5600 PE strikes. The Bears on the other, did very little at the end of the day. Though technically, Nifty looks biased to the downside till it is below 5600 level, from the options table, it is still in the range of 5500 to 5700. The strongest support has to be 5500, with over 1 Crore of OI, and if we do break it, then there will be real panic among the Bulls, which can see a straight 100+ point of downfall. On the upside, resistance levels remain at 5700 and 5800, with 5600 as the battlezone levels between the Bulls and the Bears.

For tomorrow, 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 55505540 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.

19 July: Nifty spot resistance at 5595-5625-5660-5685. Support at 5545-5520-5495-5455 - www.niftypower.com