21 July: Nifty View

Nifty today opened up on global clues, and started declining immediately. All attempts for a recovery were met with selling today. Yesterday, it had closed above 5600 after an effort of 5 days, but could not sustain above it. If it is not able to do so in coming days, it will fall under its own weight.

The options OI charts are given below:

As in Nifty, the see saw in Options Open interest data continues too. If yesterday belonged to the Bulls, today it was Bears all the way. huge amount of OI is added from 5500 CE to 5800 CE strikes. The Bulls covered almost at every level, with the most being from 5500 PE to 5700 PE strike. However, this still does not change the range for July. July month has mostly traded within the range of 5500 to 5700, and this continues to be the range suggested by the Options Charts. 5600 is still the 50:50 level. 5700 and 5800 become very strong resistances now, with OI around 1 Crore at these strikes. Similarly, 5500 is the ultimate support level.

For tomorrow, Nifty spot will face resistances at 5580-5610 level in case it attempts any recovery. On the downside, immediate support for Nifty spot comes at 5550 level. Below this, Nifty looks to set to test previous low of 5495 and lower levels. Trade as per the levels.

21 July: Nifty spot resistance at 5580-5610-5635-5665. Support at 5550-5520-5495-5455 - www.niftypower.com

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