12 August: Nifty View

In yesterday's Nifty View, 5180 was given as the strong resistance and 5110 as the support. The actual highs and lows of the day were 5184 and 5121. Also, after 4 days of heavily volatile trading, some sanity seems to be returning to Nifty, as it held its own despite extremely negative cues at the open. Keep an eye on today's range now. A move outside of this range can give the next big move. Also, we are heading into a long weekend as Monday is a holiday. Whether Nifty will give the breakout/ breakdown before the long weekend, or after it opens again has to be seen.

The Options OI charts are given below:


As yesterday, the Option Writers preferred to watch from the sidelines. This is definitely not the right time to be selling options. Yesterday we pointed out to a surprise addition OI at 4600 PE. Well, all of it was covered today, and equally surprising addition of 17 lacs+ OI was done at 4700 PE. These are unexplainable moves, and can be a part of some hedging strategy from the smart money. Overall, support for NIfty remains at 5000. 5100 is also a minor support. 5200 is the battlezone level. Minor resistances are 5300 and 5400 and major resistance is at 5500.

For tomorrow, immediate resistance for Nifty Spot comes at 5155-5165 zone and then at 5185-5200 zone. If manages to stay above these, it will target its breakout zone of 5225. Above 5225, it should head towards 5300+ levels. On the downside, support for Nifty Spot comes 5110 levels. Below this, it will test lower levels of 5075 and 5040 levels. Below 5040, panic selling will start for lower levels of 4980 and 4945.

12 Aug: Nifty Spot resistance at 5160-5185-5200-5230. Support at 5110-5075-5040-4980 - www.niftypower.com

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