8 Sep: Nifty View

Nifty opened gapup, right at our indicated resistance level of 5080, and then took support there before rallying higher towards 5150 level. In the post of 6 September, we had suggested a breakout trade above 5035, to be confirmed by a close above 5080/5120. It has given a closing right at 5120 today. Now if it manages to sustain above it, next resistance levels to watchout will be 5180 and 5230. Above 5230, there is a big gap resistance. Will it fill the gap. Seems a low probability as of now. But we prefer to trade as per our levels, rather than on Anticipation or Speculation.

The Nifty Options Open Interest Charts are given below:


First the unusual trades that we have been witnessing. Huge amount of OI was covered at 4400 PE and similar amount was added at 4500 PE. Now it definitely looks like some hedging strategies by the biggies, as they are moving the hedge inline with market movements. Other than that, the Bulls added good amount of OI at 5000 PE and 5100 PE strikes. 5000 is now upgraded to a minor support from 50:50 level. 5100 is still a minor resistance. Since Nifty has closed above 5100, a dip towards sub 5100 should not be ruled out. 4900 and below are supports now, while 5200 and above are the resistances.

For tomorrow, immediate resistance for Nifty Spot now comes at 5145-5150. If sustains above this level, it will move towards strong resistance zone of 5180-5230. Above 5230, there can be panic short covering by the Bears. On the downside, support for Nifty Spot now comes at 5100 level. Below this, it will retest its support of 5080, 5050 and 5025 levels. Trade as per the levels.

8 Sep: Nifty Spot resistance at 5150-5180-5200-5230. Support at 5100-5080-5050-5025 - www.niftypower.com

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