18 Aug: Nifty View

Nifty traded in a highly volatile manner between the second resistance of 5105 (actual high 5112) and the first support of 5015 (actual low 5017). Here, we would like to remind readers of the Post of 11 August - where we mentioned that this market is going to be a Day Traders Dream while giving a Stay Out message to the Positional trader. Nifty hasn't really done anything since then, giving volatile movements intraday, but not giving the breakout for a good positional trade. The range that we are looking at now is 5000/4950 to 5150 odd for a breakout either side. A long trade would be more preferable, keeping in mind the oversold oscillators.

The Options OI Charts are given below:


The Bears added big amount at 4900 PE and below levels, and covered at 5000 PE and above levels. On the other hand, the Bulls did not do much to change the OI today. There is another surprisingly big addition of over 12 lacs+ OI at 4800 PE level. This has been going on for quite a few days now - adding of big amount of OI at an OTM PE Option and then covering it the next day. Hence, we will not read too much into it. Overall, from the Options data, 5000 is the big support, 5100 is the 50:50 level, 5200 to 5400 are the minor resistance, while 5500 is big strong resistance area. Looking at the Options data, we can assume some volatility going into the Expiry week, and it may time for another profitable Option Straddle.

For tomorrow, immediate resistance for Nifty Spot comes at 5075 levels. If stays above this, it will again head towards todays high near 5110 and then head towards strong resistance zone of 5135-5150. On the downside, support for Nifty Spot comes at 5035/5030 levels. Staying below this, it will first head towards todays low around 5015, break of which will bring 4985-4945 levels.

17 Aug: Nifty Spot resistance at 5075-5110-5140-5180. Support at 5130-5115-4985-4945 - www.niftypower.com

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