20 July: Nifty View

Today, Nifty has finally closed above 5600 after consolidating below it for last 5 trading sessions. Is this the resumption of the uptrend that we witnessed from 5196? IT can be. But rather than speculating about where Nifty would go, just trade with the levels and everything else should be fine. 5550 becomes the important support level now, below which Nifty would straight away go to test 5495 level. On the upside, resistance area to watch is 5660-5675, crossing which, Nifty will give an indication of further upmove towards higher levels.

The Options OI charts are given below:

The Bulls had shown confidence yesterday, which they followed up today by adding open interest at 5500-5700 PE strikes. The Bears hardly did anything yesterday. Today, they covered OI at 5400-5600 CE strikes, while adding big quantity at 5800 CE strike. After today's move, the range for the Nifty remains at 5500 to 5700, with 5600 as the battlezone level. However, the OI of 1.15+ Crore at 5500 makes it as a strong support level, as well as a great concern level for the Bulls. This has to be protected now, else there will be panic all around.

For tomorrow, immediate resistance for Nifty Spot comes at 5620-5625 level. If manages to trade above this in morning trades, Nifty will head higher to test strong resistance levels of 5650-5665 and 5685 levels. Above these, it will trigger another round of short covering challenging the recent tops. On the downside, support for Nifty Spot now comes at 5580-5575 levels. Below this, it will again test 5550 levels. break of 5550 will be the first indication of downmove starting, to be confirmed by a break of 5495.

20 July: Nifty Spot resistance at 5625-5650-5665-5685. Support at 5575-5550-5520-5495 - www.niftypower.com

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