2 Aug: Nifty View

Nifty opened gap up today near its strong resistance zone of 5550-5560, but could not sustain there and steadily declines towards 5486, before recovering again and closed at 5513. As written in yesterday's Nifty View, a close above 5560 is required for a shot at 5605 and higher levels for the Nifty. On the downside, the recent level of 5450 and then 5430 become important trend deciding levels now.

The Nifty Option Open Interest Charts are given below:

The Bulls built support at 5400 and 5500 PE strikes while the Bears added good amount of OI at 5600 and higher strikes of calls. overall, it is the same picture as yesterday. The range suggested is 5400 to 5700, with 5500 as the battlezone levels. The Bulls had an upper hand at this level today. it will be interesting to see whether they are able to defend this level in tomorrow's trade.

For tomorrow, immediate resistance for Nifty spot comes at 5520/5525 levels, above which, it will again target 5540 and 5555 levels, where it is expected to meet stiff reistance again. However, if it manages to trade above these levels for sometime, then expect a retest of 5605 and higher levels. On the downside, support for Nifty spot comes at 5500/5490 levels. Below this it will slide towards 5465-5450 and 5430 levels, which will be trend deciding for the short term.

2 Aug: Nifty Spot resistance at 5520-5540-5555-5585. Support at 5495-5465-5450-5430 - www.niftypower.com

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