10 Aug: Nifty View

Tuesday was another replay of the last two trading days. Nifty opened with a Big Gap down, then recovered and even moved into positive territory during the day, before giving it up all again to close with a minor loss. Although the intraday movement would be considered to be Bullish, fact is that the Nifty has been closing lower each day. Till the time it gives a close above 5230, Trend should be considered to be down only; and Positional hope trades for recovery should be avoided.

The Options OI charts are given below:


There was not much action in the Options front, except from big addition of 14 lacs+ OI at 5000 CE by the Bears. Apart from this, the Bulls reduced their positions at higher strikes. The low interest in writing Options is understandable, given the high volatility that we are witnessing. This will pick up once some sanity returns to the markets. For now, 5000 can be taken as the support, while 5400 and 5500 are the strong resistances as per the Options charts. The levels in between will be sorted out as the series progresses.

For tomorrow, immediate resistance for Nifty spot comes at 5095-5100 levels. Above this, Bulls should be in control, and take Nifty to test higher levels of 5130, 5165 and 5205 levels. Strong sellers will come in at 5205-5230 range. Nifty will have to overcome this strong resistance for any kind of meaningful upmove to materialize. On the downside, support for Nifty spot comes at 5045-5040 region. Below this, it will again move down to test 5010-4980 and 4955 levels. Markets are volatile. Strictly trade as per the levels with tight stoplosses.

10 Aug: Nifty spot resistance at 5095-5130-5165-5205. Support at 5040-5010-4980-4955 - www.niftypower.com

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