19 Sep: Nifty View

The RBI Rate Hike News became a non-event for the Nifty. After a day of volatile moves, Nifty closed almost the same level as Thursday. Important is, that is did not break its supports on the bad news. Now lookout for a clearance above the resistance levels of 5130 and 5180, for continuation of the upmove. On the downside, 5030/5000 can be a Stop and Reverse level for the Longs.

The Nifty option Open Interest charts are given below:

The Bears added a small amount of 8 lacs+ OI at 5200 CE and 5300 CE. On the other hand, the Bears added a big amount of 23 lacs+ OI from 4900 PE to 5200 PE strikes, the maximum being at 5000 PE of 11lacs+. Apart from this, there was unusual covering at 4500 PE and further addition at 4600 PE. Keeping the recent trend in mind, tomorrow Nifty might move up, if this data is considered. Overall, 5000 has become a good support for Nifty now, and 5100 is a minor resistance. The range remains to be 4900 to 5200.

For tomorrow, immediate resistance for Nifty Spot comes around 5110 level. If it stays above this, it will target strong resistance zone of 5125/5130. Above 5130, upmove till 5150 and then 5170/5180 will be seen, where again selling pressure will emerge. On the downside, support for Nifty Spot comes around 5070 level. Below this, next supports come at 5050 and then strong support at 5030/5025 levels. Below 5025, Bears will become active again.

19 Sep: Nifty Spot resistance at 5110-5130-5150-5175. Support at 5070-5050-5025-4990 - www.niftypower.com

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