22 July: Nifty View

In yesterday's Nifty View, it was given that Nifty will face resistance at 5580 level in case of any recovery. Nifty found exact resistance at that level, making a high of 5578, before falling and breaking the support of 5550. The series of July has been an options writers dream, with a range of just over 200 points, and it looks like we will have to wait till the expiry week before any kind of trend emerges.

The Options Open Interest charts are given below:

The Bears were again hyper active today, adding big amount of OI in 5500 PE, 5600 PE and 5800 PE strikes. The Bulls were subdued as yesterday. The Options table tells the story of Nifty for this month. The OI at 5500PE, 5600 CE, 5700 CE and 5800 CE are all reaching 1 Crore+ mark. It will be very difficult for Nifty to move beyond the range of 5500 to 5600 now. Upsides may be limited above 5600 also, however, a close below 5500 will open the floodgates. What this Options table also indicates, is some volatile moves within the short range. This is a market more suited for the day traders, rather than the Positional traders.

For today, immediate resistance for Nifty spot comes at 5565-5580 levels. Above this, it will again target 5610 and 5635, where it is expected to meet some selling from the Bears. On the downside, support exists at 5550. Bears will be active below this level to drive Nifty down towards 5530 and 5495 levels.

22 July: Nifty Spot resistance at 5565-5580-5610-5635. Support at 5550-5530-5495-5445 - www.niftypower.com

Visit here for Nifty Tips