23 Aug: Nifty View

Yesterday, it was written that the 200 week SMA was probably the last hope for the Bulls. It was a well advertised level, and the Bulls managed to save it for another day. However, dont consider Nifty to be out of woods yet. It still has to overcome the levels as mentioned in yesterday's post. 4870-4860 would be important reference points now, for this upmove to continue. Otherwise, the down trend will reassert itself.

The Options OI charts are given below:


There was not much addition in either the Puts or the Calls. However, there was big amount of 20 lacs+ covering seen in 4900 PE and 4800 PE by the Bears. The Bulls also covered more than 11 lacs+ OI at 5000 CE and 5100 CE. The immediate narrow range from the options data, as of today is 4800 to 5000 - with 4900 being the battlezone level between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 4930 levels. Above this, it will target 4975/4990 area, where it will face stiff resistance. Breakout above 4990 can trigger some panic covering by the weak Bears. On the downside, immediate support for Nifty spot now comes at 4870/4865 levels. Below this, it will test 4845 and 4825 levels. Break and close below 4825 will open the gates for a test of 4750 and 4700 levels.

23 Aug: Nifty Spot resistance at 4930-4975-4995-5015. Support at 4865-4545-4825-4795 - www.niftypower.com

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