24 August: Nifty View

One day left to Expiry, and the Bulls are finally trying to make a comeback in this series. Two days earlier it was mentioned that the much advertised 200 week SMA may be the last hope for the bulls. That hope seems to have worked. Nifty should clear and stay above 4960 now, for the Bullish to be kept alive. That is where the stoploss should be on a closing basis, for longs entered today.

The Option OI charts are given below:


The Options OI charts are not to be considered for determining the range, so near to the expiry. However, it is always interesting and useful to know what the Option Sellers are doing. We can see big profit booking by the Bulls at 4600 PE strike. Also, the Bulls added nearly 20 lacs OI at 4800 PE and 4900 PE strike. The Bears covered today at 4800 CE, and added some OI at 5100 CE level. Overall, 4800 to 5100 is the range from the Option Charts. 4900 is a minor support, while 5000 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot now comes at 4970-4980 levels. Above this, it will target next strong resistance zone of 5010/5015 level. Above 5015, we can see some panic covering from the Bears, taking Nifty to higher levels of 5050 and 5110. On the downside, support for Nifty Spot will come near todays close of 4940 levels. If moves below this, expect a slide towards 4925 and 4890 levels. Below 4890, todays low around 4860 will be tested. overall, consider the trend to be up or tomorrow, as long as Nifty trades and sustains above todays closing level.

24 Aug: Nifty Spot resistance at 4975-5015-5050-5080. Support at 4940-4925-4890-4860 - www.niftypower.com

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