4 July: Nifty View

In the post of 27th June, the importance of 5520 on Nifty was mentioned, above which it was expected to test upward resistances of 5605 and then the falling trend line (refer the chart of 27 June by clicking here. Nifty has subsequently cleared 5520 and 5605. However, on Friday, it failed to cross the falling trend line and fell nearly 100 points from there, before recovering a little and closing at 5624. Bulls will be watching the level of 5605 (breakout point) and 5580 very closely now. A close below 5585 would be first indication of caution for the Bulls now. Till this level is protected, consider the trend to be Up only, and try to buy on dips. If Nifty does and break below this level, we would prefer to be on the short side and consider this breakout to be a False Move, till it again gives a closing above 5610. On the upside, the falling trend line is the immediate reference for a resistance now.

The Options Charts are given below:


It is early days to start taking cues from the Options charts. However, the initial activity shows support for Nifty at 5400 and below levels. 5500 and 5600 are the battlezone levels between the Bulls and the Bears as of now. Considering the fact that Nifty is above both these levels as of now, the advantage definitely lies with the Bulls. 5700 and above are the resistances.

For Monday, immediate resistance for Nifty spot comes at 5635/5640 levels. Above this, it will test upside resistance of 5655, 5675 and 5705 levels. As written earlier too, trading above 5705 would put the Bears in panic mode. On the downside, immediate support for Nifty Spot comes at 5605/5610 levels. Below this, it will test the importance support zone of 5580/5585. Break of 5580 can bring 5525/30 in quick time, with minor support at 5550 level.

4 July: Nifty spot resistance at 5640-5655-5675-5705. Support at 5605-5580-5550-5525 - www.niftypower.com

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