2 Sep: Nifty View

Nifty gave a good follow-up move on Tuesday, for the thumping rally on Monday. The trend can be considered to have turned neutral from Down earlier. Now is the time to start trading and look for a range to develop. The Options OI analysis will also give us some clues regarding that. 4850 on the downside, and 5150/5180 on the upside are the immediate strong resistance and support levels.

The Option OI Charts are given below:


The Bears did almost nothing on Tuesday, Just covering some of their shorts from 4700 to 4900 levels. The Bulls, however, went on overdrive. Big amount of OI was added by them from 4600 to 5000 PE strikes. Just hope that this overconfidence from the Bulls does not backfire - as it did in the last series. Overall, from the Options Charts, 4800 to 5100 is the reange developing, with 4900 as a minor support and 5000 as the battlezone level between the Bulls and the Bears.

For Friday, immediate resistance for Nifty Spot comes at 5030/5035 levels. Staying above this, it will enter into strong resistance area of 5060/5065 levels, where again some selling pressure should emerge. Above 5065, levels to watch out are 5080, 5110 and 5150. On the downside, support for Nifty Spot comes at 5000/4995 level. Below this, it will slide towards 4970 and 4940/4925 levels. Support should come at those levels,as a break of 4925 on the downside can now damage the short term technicals.

2 Sep: Nifty Spot resistance at 5030-5060-5080-5110. Support at 4995-4970-4940-4925 - www.niftypower.com

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