On Friday,Nifty opened with a Gap Down, and traded with volatility during the day, to make a low near our third support of 4825 and a high at 4930, before closing at 4864. The market is in a downtrend, and we should look for resistances to sell OR break of supports to sell in a falling market. Right now, 4930-4945 is one important resistance area which has been formed. Above this, 5050-5060 zone would be the next strong resistance area. Till Nifty stays below these levels, consider the short term trend to be down.
The Nifty option Open Interest charts are given below:
The Bulls covered big amount of 57 lacs+ on Friday, from 4700 PE to 5200 PE strikes. The Bears added significant amount only at 4800 CE. This addition of 15 lacs+ OI by the Bears, while the Nifty is still above 4800 shows their overconfidence. For Now, the range as per the Options charts is 4800 to 5100, with 4900 and 5000 being the battlezone level between the Bulls and the Bears. These battlezone levels coincide with the resistances identified at 4930 and 5050.
For Monday, immediate resistance for Nifty Spot now comes at 4885-4905 levels. If manages to cross 4905, it will head towards Friday's high of 4930-4940 levels, where again selling pressure will come. A sustained move above 4940 would lead to 4960-4990 levels. On the downside, support for Nifty Spot comes at 4855/4860 levels, Below this, selling pressure from the Bears will be on, and they will try to break 4800 eventually.
26 Sep: Nifty Spot resistance at 4885-4905-4940-4990. Support at 4850-4820-4795-4750 - www.niftypower.com
Visit here for Nifty Option Tips
Posts
No comments:
Post a Comment