27 Sep: Nifty View

On Monday, Nifty again traded with high volatility, falling 100+ points intraday, and then recovering to close around -30 points. The Bulls were able to save the 200 Week SMA once again. However, major resistances lie ahead at 4930/4940, 4990 and 5030 levels. Unless these levels are crossed, trend should be considered to be down only, and these rallies can be used to build conservative shorts, with stoploss above 5030.

The Nifty option Open Interest charts are given below:


We never rely on the Options data so near to the expiry. Normally, we would expect covering of positions as we come near to the expiry. However, just for academic purpose, we will keep monitoring it. Big addition was done by the Bears from 4700 CE to 5000 CE strikes, while the Bulls only covered their positions at higher strikes. The range as per the Option Charts is 4700 to 5000 as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 4865/4870 levels, above which, Nifty will test higher levels of 4885-4905 and 4930. 4930/4940 will be a tough level to crack for the Bulls, but if they manage to do so, we may see a short covering rally upto 4990-5030. On the downside, support for Nifty Spot comes at 4820 and then at 4800/4790 levels. Below this, todays low can be tested again, and most probably will be broken also.

27 Sep: Nifty Spot resistance at 4865-4885-4905-4930. Support at 4820-4795-4760-4720 - www.niftypower.com

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