19Aug: Nifty View

In Yesterday's Nifty View, 4950 to 5150 was suggested to be the breakout from the volatile moves in a range. Nifty gave that breakout today on the downside. Today was a trending move which was much awaited for the past week. However, we, at NiftyPower preferred to give it a miss. The Primary reason for "choosing" to miss this downmove can be found in our Post entitled "When in doubt, Stay Out!!" on our other blog - Trading Wisdom. We would have been comfortable trading the breakout on the upside. But being comfortable does not mean that you should take a trade against the trend. Hence, we preferred to stay out as we were not comfortable taking the short trade, though the charts indicated so.

The Options OI Charts are given below:


After many days, today was a day of big activity on the Options front. The Bulls covered big amount of OI, right from 4800 PE to 5300 PE strikes. On the other hand, the Bears added over 26 lacs+ OI at 4900 CE and 5000 CE strike itself. They also added good amount of OI till 5300 CE strikes. In Yesterday's Option Analysis, it was written that - "Looking at the Options data, we can assume some volatility going into the Expiry week, and it may time for another profitable Option Straddle...". Well, all those who bought the Straddle today would definitely have been rewarded by end of day and there will be more to come, definitely. Overall from the Options data, 4900 is the minor support while 4800 is the major support now. 5000 and 5100 are now the battlezone levels, while 5200 and above have now become the major resistances.