22 Sep: Nifty View

Nifty opened near 5150 on Wednesday, but could not cross its strong resistance area of 5180-5230, and closed around 5130. The strong supply zone of 5180-5230 would take an extraordinary effort from the Bulls to cross and sustain. The trend is sideways as long as Nifty is trading between 5000 and 5180. This series has been contained mostly within a range of 200 points, with volatile moves either side. As we go near the expiry, we may have a breakout/ breakdown move soon.

The Nifty option Open Interest charts are given below:

There was very little activity on the Options front, ahead of the important Fed meeting. The range as per the Options table remain where it has been for most of the series. 4900 to 5200 is the range. 5000 is a minor support, while 5100 is a minor resistance. Important to note that though the Nifty has closed above 5100 for two days in a row, the Call writers at 5100 CE haven't covered their positions and the level remains a minor resistance. Maybe the Call writers expect a Dip below 5100, before any further upmove.

For Thursday, immediate resistance for Nifty Spot comes at 5145/5150 levels. If it manages to stay above this, it will head for 5170/5180 again, where Bears will become active. Above 5170, 5195 and 5225/5230 are the next levels to watch out. On the downside, support for Nifty Spot comes at 5110/5115 levels. If trades below this, it will slide to test its lower level supports of 5080, 5050 and 5020 levels. Break of 5020 will lead to short term trend change from sideways to down.

22 Sep: Nifty Spot resistance at 5145-5175-5195-5225. Support at 5110-5080-5050-5020 - www.niftypower.com

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