28 Sep: Nifty View

Today, Nifty opened gap up and then steadily climbed to cross its strong supply zone of 4930/4940, to reach the next resistance level of 4990. As soon as it had crossed 4930 after the gap up, it was clear that it was a going to be an Up Trend Day, and there was no point in trying to fight it. Now, tomorrow becomes a crucial day, just one day before the expiry. Major resistances lie ahead at 5000-5030 and 5060 levels. It will take something really special to cross and sustain above these levels. overall, this series has been rangebound with volatility, between 4800 and 5200.

The Nifty option Open Interest charts are given below:

Yesterday, we had pointed the overconfidence from the Bears, by seeing the huge addition at 4800 CE level, while Nifty had closed above 4800. Todat, that overconfidence had hit them hard, and they had to cover big at 4700 CE, 4800 CE and 4900 CE strikes. The same exuberance is seen from the Bulls today, who have added a big amount of 39 lacs+ OI at 4900 PE and 5000 PE strikes. This when Nifty is below 5000, does show overconfidence. However, as pointed out yesterday also, the Options data so near to the expiry should be studied for academic purpose only.

For tomorrow, immediate resistance for Nifty Spot comes at 5000 levels. Sustaining above this, it will target next resistance of 5035 and 5060, where again some Bears are expected to turn up. On the downside, support for Nifty spot comes at 4960 level. Below this, it will slide lower towards 4940-4915 and 4900 levels.

28 Sep: Nifty Spot resistance at 5000-5035-5060-5090. Support at 4960-4940-4915-4900 - www.niftypower.com

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