4 Aug: Nifty View

Today, Nifty opened near 5400 on bad global cues, made a low of 5378, but closed near the highs of the day at 5413. The Bears will be happy that it closed below important support of 5430. The Bulls will have hope as Nifty closed near the highs, inspite of the negative global cues. 5370 was the trend deciding level indicated in yesterday's Nifty View. Nifty came within striking distance of that level today. Tomorrow, the Bulls have to try and close it above 5430 again, else 5370 will be tested again.

The Options OI charts are given below:


The Bears added big amount of shorts at 5300 CE to 5600 CE strikes todays, the maximum being at 5400 CE. However, the Bulls still have an upper hand a this level, with more than 65 lacs+ OI at 5400 PE. The Bulls also strengthened support at 5300 level by adding more than 16 lacs+ OI at 5300 PE strike. Overall, the range from Options table now is 5400 to 5600, with 5500 as the battlezone level, with a negative bias. This is the same range which was there whole of July series. August should give a breakout from this range.

For tomorrow, immediate resistance for Nifty spot comes at 5425-5430 level. Above this , it will face stiff resistance at 5450 level. However, if manages to stay and trade above 5450 for sometime, then 5500+ will be in sight. On the downside, support comes at 5390 level, below which, it will slide towards 5370 level. If breaks 5370, it will spread some panic among the Bulls for lower levels of 5330/5315 level.

4 August: Nifty spot resistance at 5425-5450-5485-5510. Support at 5390-5370-5330-5295 - www.niftypower.com

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