3 Aug: Nifty View

Today, Nifty opened near our first support of 5490, broke it in morning itself, and steadily declined towards last support of 5430, before recovering some lost ground to close at 5457. It just managed to save the support of 5430. Will it be able to do so again? It should first close above 5490 for the support to be valid. Else, a retest might be on the cards.

The Options OI charts are given below:
The Bears are working at levels of 5500 and above, while the Bulls are busy at building support at 5400 and below levels. There was some covering by the Bulls at 5500 PE strike, while the Bears added big amount at 5500 CE and 5600 CE strike. The range as of now from the Options charts still remain at 5400 to 5700. Hence, till Nifty closes below 5430, consider the trend to be sideways only.

For tomorrow, immediate resistance for Nifty spot comes at 5480-5490 range. Above this, it will test higher levels of 5525 and 5550 levels, which is the immediate strong trend deciding level for the short term. On the downside, support for Nifty spot comes at 5440/ 5430 levels. Below this, it will slide towards 5410 and 5370 level. Below 5370, Bulls will panic for 5330/5315 level.

3 August: Nifty spot resistance at 5485-5510-5525-5550. Support at 5435-5410-5370-5330 - www.niftypower.com

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