17 Aug: Nifty View

Today, Nifty opened up at 5125 on positive global cues, but steadily lost ground thereafter. Last week's candle formed o Doji pattern on weekly charts. A bearish start to the week will not give comfort to the Bulls. However, the fall of today has happened on declining Volumes. These volumes should pick up if and when Nifty breaks 5000. if they do not, then we may have a false breakdown on the cards. The oscillators re also at oversold levels right now, and can turn back up again leading to fierce short covering. Hence, this is definitely not the right time to open fresh shorts. Longs can be considered if Nifty gives a close above 5075 now.

The Options OI Charts are given below:



The Bulls added good amount of OI at 5000 CE to 5200 CE, while profit booking at 5300 CE and above strikes. Bulls added OI at 4800 PE to 5100 PE levels, while covering at 5200 PE and above strikes. With the big covering happening at 5200 PE, this levels has become a good Minor resistance level now. 5100 is the 50:50level as of now. 500 is the major support, while 5500 is the major resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5565-5575 range. Above this, it will again try to cover some ground till 5105 and 5135 levels, where Selling pressure will emerge. If somehow manages to cross and sustain 5135, it will head for higher levels of 5190-5225. On the downside, Support for Nifty spot comes at 5015 level. Trading below this, it will slide towards 4980 and 4945 level, which was the recent panic low. Expect some support to come at that level.

17 August: Nifty Spot resistance at 5070-5105-5130-5190. Support at 5015-4980-4945-4875 - www.niftypower.com

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