5 July: Nifty View

On Monday, Nifty opened at 5679, slid towards 5633, and then traded rangebound to close at 5649 level. It formed an "Inside Day" in the process. (Inside Day - "A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day" - Source - Investopedia). Tomorrow's movement now becomes crucial for this uptrend. If, tomorrow Nifty moves below 5633, the low of today, it might be the first sign of correction for this rise. A close below 5600/5580 would confirm it. On the other hand, a move above today's high of 5679, would set it up for 5703, and higher levels.

The Options Charts are given below:

An Inside Day signifies indecision between the Bulls and the Bears. And the Option Writers loves indecision. Calls and Puts were added by both, the bulls and the bears. 5600 - which is the Level of the Year, is still the deciding factor as of now. On break of "Inside Day" range of today, how the writers at 5600 reacts, would give us clue to the next probable movement in Nifty. 5500 and below are the supports, while 5700 and above are the resistances.

For tomorrow, immediate resistance for Nifty spot comes at 5660 level. Above this, it will retest Monday's high of 5675/5680 level. Above 5680 , it will go towards 5705 level, which is crucial level to watch. On the downside, support for Nifty Spot comes at today's low of 5630/5635 level. Break of this, will lead Nifty to 5605-5580 and 5525 level.

5 July - Nifty Spot resistance at 5660-5680-5705-5720. Support at 5630-5605-5580-5545 - www.niftypower.com

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