20 Sep: Nifty View

Nifty opened gap down today, and then steadily declined towards its strong support area of 5025, and then traded rangebound between 5020 and 5040. It has created a gap today, and Friday's low of 5070 becomes a crucial resistance now for any upmove. On the downside, it just managed to hold on to the support of 5020, but the bounce from there was not convincing. Tomorrow's movement will hold the key to the short term trend. The levels of 5020 and then 4985 should hold for the upmove to continue. Else, the Bears will be back up again from their sleep.

The Nifty option Open Interest charts are given below:

The Bulls covered a big amount of Put Options today at 5200 PE strike. Apart from this, there is this unusual covering at 4400 PE, 4500 PE and 4700 PE. There is also an unusual addition of almost 6 lacs OI at 5300 CE by the Bears. This has been the characteristic of this series. The additions are happening at OTM strikes, and hey are being covered also with equal speed. Overall, the range remains 4900 to 5200. 5000 is a minor support and 5100 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot now comes around 5050 levels. If Nifty manages to stay above this, it will target next strong resistance zone of 5070-5080. Above 5080, Bulls will be in control and take Nifty to higher levels of 5110-5130 levels. On the downside, support for Nifty Spot comes at 5020 levels. Below this, Nifty will slide towards 5005 and 4985 level. Intraday, Bears will be in control as long as Nifty trades below 5000 level, and can even take Nifty towards 4930/4920 level.

20 Sep: Nifty Spot resistance at 5050-5075-5110-5130. Support at 5020-5005-4985-4960 - www.niftypower.com

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