7 Sep: Nifty View

In yesterday's Nifty View, 4945 to 5035 were given as immediate breakout/ breakdown points. 4900 to 5080/5120 was given as the broader range. Nifty made a low of 4942, took support and cleared 5035 in the last hour of trade. It nearly reached its upper end of the range, making a high of 5072. As given yesterday, long trade was triggered above 5035. However, it did not get confirmed as Nifty could not cross 5080/5120 zone. Tomorrow's trade will give more clues to the breakout.

The Nifty Option Open Interest charts are given below:

From last two days, there was surprising addition at 4400 PE. Today it is the turn of 4600 PE and 5300 CE. We will keep monitoring this new trend and see how it develops. Apart from this, the Bulls added a small amount of OI at 4900 PE to 5100 PE strikes. The Bears also added small amount of OI at 5000 CE to 5300 CE strikes. Overall, the range as per the Option charts remain the same as yesterday. 4800 to 5200 is the broad range, with 5000 being the battlezone level as of now. 4900 is a minor support, and 5100 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5080 levels. Above this, it will head towards next resistance band of 5110/5120. The Bulls will have to really work hard to break these resistance levels, for upside levels of 5150 and 5180. On the downside, support for Nifty Spot now comes at 5020/5030 zone. It should find support at this level, if this breakout has to be valid. If however it trades and sustains below this level, it will test lower levels of 4985-4960 and 4945. Below 4945, selling pressure will resume as written earlier also.

7 Sep: Nifty Spot resistance at 5080-5115-5150-5180. Support at 5020-4985-4960-4945 - www.niftypower.com

Visit here for Nifty Option Tips