1 Nov - Nifty View

On Monday, Nifty opened down on negative global cues, and then remained rangebound for almost the entire day. After the big upmove of past week, the movement of last two trading days can be termed as consolidating moves. Soon, volatility should pick up. As given yesterday also, on any down day, the support formed should hold, for this upmove to remain valid. The immediate support formed over the past few days is in the 5320/5330 zone. Once Nifty moves below it, this zone will act as a resistance. Those who are out from the market, can then enter on a fresh breakout from this zone. On the downside, important supports exist at 5280/5230 and 5210 levels. These supports should hold on any downmove due to negative global markets. Break and close below these will be the first sign of weakness now. Till then, Buy on Dips should be the mantra for traders.

The Nifty option Open Interest charts are given below:


It was a muted day from the Option writers today. The Bulls added 11 lacs+ OI at 5200 PE and 5300 PE strikes. The Bears added 14 lacs+ OI at 5300 CE to 5500 CE strike. The range as per the Option Charts remain to be 5000 to 5400, with 5300 as the battlezone levels between the Bulls and the bears. 5200 and 5100 are the minor support levels as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5330/5340 levels, above which, the Bulls are expected to take Nifty to higher levels of 5365 and 5405 levels. On the downside, support for Nifty Spot comes at 5320/5315 levels. Below this, next support for Nifty spot comes around 5280 levels. Below 5320, Nifty Spot can attempt to fill the gap till 5230 levels. However, it will still be advisable to build long positions at lower levels, with closing stoploss below 5200.

1 Nov - Nifty Spot resistance at 5340-5365-5405-5455. Support at 5320-5285-5250-5230 - www.niftypower.com

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31 Oct - Nifty View

On Friday, nifty opened with a huge Gap Up of more than 3%, and thereafter remained in a narrow range throughout the day. This rally would have left most of the traders behind, as it started on Expiry Day, and then is continuing with a huge gap. Now, on any downmove from here, the left out traders must start entering the market and supporting it. Hence, we should expect the major supports to hold for this upmove to continue. Failure to hold any support, would give the first warning that the upmove might me fading out. As of now, it is only gaining strength. Hence, keep looking for Buying Opportunities.

The Nifty option Open Interest charts are given below:

The Bulls seem to be in a hurry in this series. Huge Open Interest of more than 45 lacs+ was added at 5200 PE to 5400 PE strikes. The Bulls on the other hand, added OI at levels upwards of 5500 CE strike only. The range as per the Option Charts is 5000 to 5400, with 5300 and 5200 being the battlezone level between the Bulls and the Bears. As Nifty is above 5300 right now, any fall below this level towards 5230/5200 should be considered normal as of now. Only a break and close below 5200 would arrest this upmove for now.

For tomorrow, immediate resistance for Nifty Spot comes at 5360/5365 levels. Above this, Bulls will be in control, and take Nifty towards 5400/5405 levels, where again some profit booking might be seen. Above 5405, next major resistance comes near 5455 level. On the downside, support for Nifty Spot comes at 5330 levels. Till it stays above this, consider the intraday trend to be positive only. Below 5330/5320, one can go short for targets of 5285 and below.

31 Oct - Nifty Spot resistance at 5360-5390-5405-5455. Support at 5330/5305-5285-5250 - www.niftypower.com

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28 Oct - Nifty View

In the Nifty View for Expiry Day, it was written that.. "Quite often, a trending move starts on Expiry Days...". The logic is that a lot of traders prefer to stay out on Expiry days. hence, it is the best time to make the crowd Miss the Trade.
A trending move is what we saw on Expiry Day, after the initial volatility because of the RBI News. It was a breakout, which was carried forward into the Muhurat Trading on Diwali. Nifty has broke out from this level after nearly three months. For Positional traders, the only trade one should be in at this time should be a Long Trade. For this long trade, an ideal stoploss should be the breakout level of 5180/5150 level. For those who missed out on Longs till now, another opportunity is to go long above 5230 Spot. One can trade with reduced Lots to manage the larger Stoploss in case of a Fresh Long Trade above 5230 Spot.
There would also be a lot of urge among a section of traders to go Short at these level. A Gentle Warning for them is.. Dont try to be the First One and OutSmart the Market. There will be plenty of opportunities to Go Short if Nifty is unable to hold higher levels and falls again below 5180. As traders, one should only be trading what he Sees on the Charts, and Not what he Believes. And the Charts are turning Bullish after a very long time. If this turns out to be a False Move, we will get a very Violent move on the Downside. But till the time 5180/5150 is not broken, either you Play on Long Side, or Stay out and Wait for right opportunity to Short.

The Nifty option Open Interest charts are given below:
The Bulls have added big amount of Open Interest right at the beginning of the series. This shows some overconfidence from them. The Bears have added OI only at higher levels, upwards of 5300 CE strikes. The range developing as per the Options charts is 5000 to 5400, with 5100 being a minor support and 5200 being a minor resistance. The change in the status of 5200 from being a stiff resistance over the past two months to being a minor resistance for his series shows some level of underconfidence from the bears. The next few days will be interesting to see, where they decide to add OI.

For tomorrow, immediate resistance for Nifty Spot comes near the Gap level of 5225/5230. if it sustains above this, it short covering may be seen till higher levels of 5270/5280 and then the Gap high of 5325. Above 5325, levels to watch for some resistance are 5365 and 5405. For Positional traders, 5325 and 5405 would be profit booking areas, if nifty reaches those levels in this upmove. On the downside, immediate support for Nifty Spot now comes at the breakout levels of 5180/5175. if slides below this, then further downside towards 5150 will be seen. Below 5150, this breakout can be considered to be a false move, and Positional Shorts can be opened with Stoploss again above 5200 levels.

28 Oct - Nifty Spot resistance at 5230-5275-5325-5365. Support at 5200-5180-5150-5085 - www.niftypower.com

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Wish You A Very Happy Diwali

25 Oct - Nifty View

A shortened series comes to an end tomorrow. It was another series within the range set in August/September, however, with a reduced volatility than was seen in Sepember. A lot of moves in this expiry happened by way of Gap Ups and Gap Downs. Tomorrow, apart from expiry, is a News Heavy Day. Hence, expecting some Tops and Turns is normal tomorrow. Trade light and with discipline. Quite often, a trending move starts on Expiry Days. Lets see what this expiry brings.

The Nifty option Open Interest charts are given below:
One day before expiry, it is normally expected that OI will be covered in the ITM Options. That was the case today at almost all the strikes, except for the big addition of 8 lacs+ OI at 5200 PE. We would not read too much into this one day before the expiry. Apart from that, the range remains the same, with 5100 becoming a 50:50 level between the Bulls and the Bears. Looking at the Options table, an expiry between 5100 to 5200 would give maximum benefit to the Option Writers.

For tomorrow, immediate resistance for Nifty Spot comes at 5115/5120 levels. Above this, it will again head towards 5145/5150 levels, above which, lies the toughest resistance of 5175/5180. On the downside, support for Nifty Spot comes at 5070/5075 levels, below which, the support of 5030 is expected to be tested and broken, eventually. Tomorrow, be long above 5120 and be short below 5070. Only fast and nimble traders attempt trades in between.

25 Oct - Nifty Spot resistance at 5120-5150-5175-5205. Support at 5070-5035-5005-4970 - www.niftypower.com

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24 Oct - Nifty View

We enter into a shortened week, with an early expiry for Nifty due to the Diwali Holidays. Nifty broke below its important support of 5050 on Friday, but could not break the next support of 5030. This level will be a reference level on the downside for tomorrow. If Nifty breaks this level, then a Short trade will be on, with stoploss above Friday's closing price. On the upside, the level of 5075/5080 will be the reference point. Above this level, nifty may again go to retest 5120. Stoploss for this long trade will also be Friday's closing price. In between these two levels, rangebound trading is bound to continue.

The Nifty option Open Interest charts are given below:

Small addition was done by the Bulls at 5000 CE and 5100 CE strikes, while the Bulls covered big quantity of 12 lacs+ OI at 5100 PE and 5200 PE strikes. After Friday's action, 4900 to 5200 remains the range as per the Options Charts. 5000 is a minor support, while 5100 is a minor resistance. The earlier identified levels of 5030/4970 and 5075/5120 are the levels to watchout for action in the Options Open Interest Levels.

For tomorrow, immediate resistance for Nifty Spot comes at 5075/5080 levels. Above this, the Bulls will again take it to test resistance zone of 5120/5130. If manages to sustain above 5130, it will head towards 5170+ levels this expiry. On the downside, Support for Nifty Spot comes at 5030 levels. Below this, a slide towards 5005/4970 will come. Below 4970, the Bulls are expected to give in to Bear Pressure for this Expiry.

24 Oct - Nifty Spot resistance at 5070-5090-5120-5150. Support at 5030-5005-4970-4945 - www.niftypower.com

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21 Oct - Nifty View

Nifty opened Gap Down on negative global cues today, broke its support of 5050, took support at 5030, and closed at the highs, though with losses. After today's movement, it has again formed a sort of Bullish Dragonfly Doji, though not a textbook one. Once again, as long as it remains above the closing price of today, consider the trend to be bullish. On the downside, 5070, 5050 and 5030 are three reference points to look out for, in case it slides further down. Intraday traders can initiate a Short on the break of first support, while Positional Traders should initiate reverse longs below the last support.

The Nifty option Open Interest charts are given below:

The Options charts show a completely opposite picture from Yesterday's charts, with the Bulls nearly missing in action, except for some covering done by them at 5100 PE strikes. The ears, on the other hand, have been over enthusiastic (just like the Bulls yesterday), in adding huge amount of OI at (40 lacs+) between 5000 CE to 5200 CE strikes. After todays action, 5100 still remains as the battlezone level between the Bulls and Bears. 5200 is the most prominent resistance, while 5000 and below are the supports.

For tomorrow, immediate resistance resistance for nifty Spot again comes in the 5120/5130 range, above which, it will head higher towards 5155-5175 levels, where Bears will be active again. if it manages to cross 5175 level with volumes, then the Gap resistance of 5230 will be the next big resistance for Nifty. On the downside, support for Nifty Spot now comes at 5070/5065 levels. If trades below this in morning, then a slide towards 5050/5030 will be seen. A close below 5030 would favor the Bears for this expiry.

21 Oct - Nifty Spot resistance at 5125-5155-5175-5230. Support at 5065-5050-5030-5005 - www.niftypower.com

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20 Oct - Nifty View

Today, Nifty opened gap Up at 5080, and then steadily climbed up t oreach 5140 levels. It was a trend day, which was expected after the Bullish Dragonfly Doji made yesterday on Daily charts. nifty is now again within striking distance of 5175/5180 levels, which it has attempted three times before and failed. Above that, the Gap resistance of 5230 is another major resistance. If it somehow manages to scale these levels, expect big volatile moves this Expiry. However, the Bears are not going to give away these levels easily, as they know that a lot of Bulls will jump in after these levels. Further, a lot of traders would liquidate their positions near these levels, and wait for a confirmed move above 5200 before taking a fresh position. This will further put pressure on Nifty, and make it more difficult to cross these levels. As suggested before also, an option straddle of 5100 or 5200, as Nifty approaches these levels, can turn out to be a Jackpot trade for this expiry.

The Nifty option Open Interest charts are given below:

Yesterday, the Bulls had covered a big amount at 5100 PE strikes. Today, they more than made up for it by adding a huge amount of 20 lacs+ OI at 5100 PE strikes. With just 4 days to go for the expiry, this is big overconfidence from the Bulls. If the Bears manage to take Nifty below 5100/5080 now, these Bulls can panic, leading to a swift downside for the Nifty. Till then, consider this as a bullish sign only. The Bears have also covered a huge amount of OI at 5000 CE and 5100 CE strikes. With this, 5100 has now become the battlezone level with a Bullish bias. 5000 and below are the supports, while 5200 is still the most prominent resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5170/5080 levels. The Bulls will have to fight it out, but if they manage to cross this level, then Nifty will head higher towards5225/5230 levels. Above 5230, we can see some panic short covering from the Bears. On the downside, support for Nifty Spot comes at 5130/5115 levels. Below these, intraday slide towards 5090/5080 levels will be normal. Below 5080, the Bears will try to create panic among the Bulls who wrote 5100 PE in huge quantity today. Hence, the Bias will turn toward sthe Bears, if Nifty Spot trades below 5080 tomorrow.

20 Oct - Nifty Spot resistance at 5175-5205-5230-5265. Support at 5130-5115-5085-5045 - www.niftypower.com

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19 Oct - Nifty View

Nifty opened Gap Down today, on negative global cues, broke our level of 5030 in intraday, but then recovered and closed above it. In the process, it formed a Bullish Dragonfly Doji on daily charts. It is not textbook pattern, but we may still consider it a bullish sign if we get a confirmation move tomorrow or this week. That confirmation will first comes on Nifty trading above 5085 and then 5120 . On the downside, it still has to respect 5030/5020 levels. Break and close below these levels would turn the immediate short term trend down.

The Nifty option Open Interest charts are given below:
The Bulls covered nearly 16 lacs OI at 5000 PE and 5100 PE strikes, while the Bears added 6 lacs at 5000 CE. Most notable was the huge amount of covering at 5100 PE. After today's move, 5100 has again become a minor resistance point, while 5000 remains a minor support. 5200 remains the biggest hurdles for the Bulls on the upside. 5000 and below are the supports.

For tomorrow, immediate resistance for nifty Spot comes at 5060/5085 levels. Above 5085, the Bulls will again try to conquer 5120-5150 and 5175 levels. On the downside, support for Nifty Spot comes at 5030/5020 levels. Below 5020, intraday slide towards 5005/4970 levels can be seen. Below 4970, Bears will take over the trend.

19 Oct - Nifty Spot resistance at 5060-5085-5120-5150. Support at 5025-5005-4970-4950 - www.niftypower.com

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17 Oct - Nifty View

Last week, we had indicated in the Post of 13th Oct, it was indicated that traders will have to wait to see if Nifty reaches and close above the strong resistance band of 5180/5230. The outcome of that wait should be seen this week. Nifty has made some good breakouts and is strikingly close to the that gap area. At this juncture, traders can think of buying an option Straddle (of 5100 PE and CE or 5200 and CE combination). This is based on the assumption that whatever Nifty does near these levels, it will be very difficult for it to sustain in this resistance band. Hence, we can expect increased volatility, as Nifty approaches this band.

The Nifty option Open Interest charts are given below:

As expected on an up day, the Bulls added nearly 25 lacs OI at 5000 PE and 5100 PE strike, while the Bears mostly covered at 5100 CE and below strikes. 5100 is the battlezone levels as of now, with almost equal OI of 42 lacs at 5100 PE and 5100 CE strikes. 5200 stands tall as the toughest resistance, while support exists from 5000 and below levels. As long as Nifty stays above 5000/5030 levels, the present trend can be assumed to be up, and buy on dips should be the strategy for traders.

For tomorrow, immediate resistance for Nifty Spot comes at 5145/5150 levels, above which it will heads for the much talked about resistance band of 5170/5205 and 5230. if Bulls manage to stay and close Nifty above 5230, the the Gap Area from 5230 to 5325 will be attempted by them. On the downside, support for nifty Spot comes at 5110/5115. Below this, next supports comes at 5085, 5065 and 5030 levels. If breaks and trades below 5030, then this uptrend will come into question.

17 Oct - Nifty Spot resistance at 5145-5175-5205-5230. Support at 5110-5085-5065-5030 - www.niftypower.com

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14 Oct - Nifty View

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Nifty opened the day up today, but slipped from the strong resistance levels of 5120/5130 given yesterday, to end the day lower around 5070 levels. Consider the short term trend as up only, till it is giving a close above 5000/5030 levels. Upside resistances remain at 5120-5180 levels. Do remember that Nifty is still trading within the broad range of 4700-5200. It is above the mid point as of now, hence, the Bullish bias.

The Nifty option Open Interest charts are given below:


The Bulls were almost absent today, while the Bears added a good amount of 22 lacs+ OI at 5100 CE to 5200 CE strikes. 5200 remains as the strongest resistance for Nifty, while 4800 is the strongest support. 5000 and 5100 is the immediate narrow range, which should be resolved tomorrow, or early next week.

For tomorrow, immediate resistance for Nifty Spot comes at 5090/5095 levels. Above that, it will retest strong resistance zone 5120/5130. If sustains above 5130, then a retest and possible break of 5175 is likely. On the downside, immediate support for Nifty Spot comes at 5050/5060 level. Below this, it will slip to test the supports formed at 5025-4980 levels.

14 Oct - Nifty Spot resistance at 5095-5125-5155-5175. Support at 5055-5025-5005-4980 - www.niftypower.com

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13 Oct - Nifty View

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It was a News heavy day today, with Infosys results and IIP numbers, and Nifty traded in a volatile manner before making a big move up to reach 5100 levels. This rally up has been a strong rally from the Bulls. Supports have tested intraday (at 4990 today and 4880 earlier), and buying has emerged from the supports. Hence, a sudden fall in the market looks difficult at this stage. However, Nifty is again reaching the crucial resistance of 5180/5230. Also, it is already up 4% this week. It can still gain more, but it will require an extraordinary effort from the Bulls to cross it. Hence, Positional longs should book here and look for a trade early next week. For intraday traders, it is now a Buy on Dips, till supports at 4990 is held now.

The Nifty option Open Interest charts are given below:
The Option Charts depict a completely Bullish picture today. Huge addition of 45 lacs+ OI was done by the Bulls at 4900 PE to 5100 PE strikes. The Bears covered 22 lacs+ OI at 5000 CE, 5100 CE and 5200 CE strikes. 5200 still remains as the most important resistance from the Option Charts, with an OI of 56 lacs+ at 5200 CE strike. The support is now at 4900. 5000 and 5100 are the 50:50 levels as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5120/5130 levels. Above this, it will head for strong resistance zone at 5175-5230 levels. As always, movement at this zone will be crucial. Positional traders can think of buying an Option straddle if Nifty reaches this level, as big move either side can come from this level. On the downside, support for nifty Spot comes at 5080 and 5045 level. Below 5045, Bears will try to push it lower towards 5025/5005 levels, where again, buying support is expected from the Bulls.

13 Oct - Nifty Spot resistance at 5125-5155-5175-5230. Support at 5080-5045-5025-5005 - www.niftypower.com

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12 Oct - Nifty View

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Nifty opened gap up again today, but closed lower after making a high in our indicated strong resistance zone of 5030/5050. This zone is crucial for this upmove to continue, as the Bears keep waiting at 5030/5050 and 5085 levels. Similarly, on the downside, 4950 and 4905 are the crucial levels for the Bulls to save, otherwise the Bears can create panic. Tomorrow is a big day with few important News to come. How Nifty reacts after the News, whether good or bad, whether it respects the supports or take out the resistances, is to be watched tomorrow. Trade safely.

The Nifty option Open Interest charts are given below:
It was the Bears Day out today, who added more than 30 lacs+ OI from 5000 CE to 5400 CE strikes. On the other hand, the Bulls did small addition at 4800 PE strike, and nothing much at other strikes. Overall, 5000 remains the battleone between the Bulls and the Bears. This level should most probably get resolved tomorrow.

For tomorrow, immediate resistance for Nifty Spot now comes at 4995 level. if stays above this in morning, then it will again head towards 5030/5050 and 5085 area, where the Bears will give them stiff resistance. If however, the Bulls are able to take out the Seller at 5080, then 5120/5130 will be the next targets. On the downside, support for Nifty Spot comes at 4960 level. Below this, intraday slide towards 4930-4910 and 4880 will be seen. It should get some support near these levels, else the Bear will gain take over.

12 Oct - Nifty Spot resistance at 4995-5030-5050-5085. Support at 4960-4930-4910-4880 - www.niftypower.com

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11 Oct - Nifty View

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We had a trend day in Nifty today. This was the follow-up move to Friday's big gap up. It is still hovering around the middle of the range, and is more of a trading market rather than a trending market. Upside resistances are now at 5030 and 5085 levels, where again Bears are likely to show up. On the downside, the Bulls have to save 4950/4930 and 4880 levels, for the upmove to continue.

The Nifty option Open Interest charts are given below:

In Yesterday's Option Charts, 4900 was identified as the battlezone level between the Bulls and the Bears. That has been taken over by the Bulls today, making it a good support level. There was addition of nearly 15 lacs OI at 4900 PE strike by the Bulls, while the Bears covered more than 10 lacs+ OI at 4900 CE strike. Addition of OI is also seen at 4800 PE, 5000 PE and 5100 PE strikes, while covering was done at 4800 CE and 5000 CE strikes. As of today, 5000 is the next battlezone level between the Bulls and the Bears. 4900 and below are the supports, while 5100 is a minor resistance. 5200 is the major resistance, but it is far away as of now.

For tomorrow, immediate resistance for Nifty Spot comes around 5005 level. Above this, Nifty Spot will enter the strong resistance zone of 5030/5050 and 5080. Here again, it is expected to face some selling pressure. If however, the Bulls are able to take out the Seller at 5080, then 5120/5130 will be the next targets. On the downside, support for Nifty Spot now comes at 4950 level. Below this, intraday slide may be seen towards 4920/4915 levels. Below 4915, Bears will push it down lower towards 4880 levels.

11 Oct - Nifty Spot resistance at 5005-5030-5050-5080. Support at 4950-4920-4880-4850 - www.niftypower.com

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10 Oct - Nifty View

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The Bulls made a comeback on Friday, with a huge Gap Up open. The day, however, ended lower than the open. Currently, nifty is poised in the middle of a broad range of 500 points, from 4700 to 5200. Till it is between these levels, it is a Trader's Market. Within the range, important levels have been identified and trading should continue with these levels in mind. Gradually, it will become too predictable within the range, and then will be the time for a breakout/ breakdown from the range. Till then, keep trading with the levels.

The Nifty option Open Interest charts are given below:

The important levels to watch the action on the Options front are from 4800 to 5000. here, we see addition of 13 lacs+ OI at 4800 PE and 4900 PE by the Bulls. The Bears covered approx. 4.5 lacs at 4800 CE. Hence, 4800 is the level to watch in case of any slide next week. Other than that, there is no significant activity at the ITM strikes. 5000 is a minor resistance area on the way up, and 4800 and below are the support areas. 4900 is the battlezone level between the Bulls and the Bears as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 4910/4930 range. Till it stays below these levels, the Bears will try to push it down. Above this, we may see some panic short covering for higher levels of 4970-5005 levels. On the downside, support fro Nifty Spot comes at 4890 levels. Below this, intraday slide towards 4860-4830/4825 may be seen. As we are in the middle of the range, be quick to reverse positions, in case a trade goes wrong.

10 Oct - Nifty Spot resistance at 4910-4930-4970-5005. Support at 4890-4860-4830-4770 - www.niftypower.com

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5 Oct - Nifty View

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In Yesterday's Nifty View, 4870 to 4905 was given as the toughest resistance for Nifty, and it was recommended to short it on all rises till this level was crossed. The high it made today was 4869.75. On the way down, nifty has formed a resistance zone between 4830 to 4850 level. This would be the immediate resistance point in case of any bounce. Downside, the August lows near 4720 were supported today. However, in a falling market, always look for Resistances and not the Supports. Only when the resistances are crossed, should we look for these resistances to become supports, and Buy with Stoploss below them. For tomorrow, the levels to watch on upside will be at 4770 and 4830.

The Nifty option Open Interest charts are given below:

On such a down day, one would expect some big addition from the Bears. And they did exactly that, by adding 37 lacs + OI from 4700 CE to 5300 CE strikes, the maximum addition being at 4800 CE and 4900 CE. The Bulls covered nearly 5 lacs at 4900 PE, but apart from that, there was no major covering from the Bulls. Infact, some addition was also seen from the Bulls at 4700 PE. Apart from this, there is an unusual addition at 4300 PE, which has been the trend for the past two months. Overall, the Options Charts do not look as Bearish as the Price Action is telling us. 4800 PE still has much more OI than 4800 CE, indicating the bulls have not started panicking yet. Either we will see a recovery from here (maybe after making a new low), or the Bulls will panic once 4700 breaks, and start covering their positions at 4800 PE. Hence, 4700 and 4800 are the next most important levels to watch, as per the Option Charts.

For tomorrow, immediate resistance for Nifty Spot comes at 4790 level. If manages to stay above this, it can head towards 4825/4830, where again selling pressure will emerge. On the downside, support for Nifty Spot comes at 4750 and then major support is at recent low of 4720. How Nifty reacts at this level, will decide the next few days trend for the market.

5 Oct - Nifty Spot resistance at 4770-4795-4825-4860. Support at 4750-4720-4690-4660 - www.niftypower.com

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4 Oct - Nifty View

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In Yesterday's Nifty View, we identified 4900 and 5030 as the immediate breakout/ breakdown levels, beyond which, the next 100 point move was expected. Nifty opened gap down below 4900, and made a low near 4820. There was not much trade possibility during intraday, but the positional shorts, taken on break of 4980 and 4960, have given good gains already. The Gap area of 4870 to 4905 will be the toughest resistance for Nifty and immediate stoploss for aggressive shorts. Till this zone is crossed and sustained, keep looking for new shorting opportunities. Positional longs should now be tried only on a close above 4960.

The Nifty option Open Interest charts are given below:

The Options table tells a different than what was witnessed on the screen today. Despite the recent falls, the Bulls are expecting the levels of 4800 and 4700 to hold. Big amount of OI was added at 4700 PE and 4800 PE strikes. Some covering was also done by the Bulls at 4900 PE and above strikes.On the other hand, the Bears mainly added OI at 4900 CE strike. Not much addition was done at other strikes. Overall, from the Options data, the range is between 4800 to 5100/5200. In between, 4900 and 5000 are the 50:50 levels as of now. The Options table as of now points to recovery ahead. However, this can change colors quickly. Hence, it should be taken only as an indication, to be confirmed by the Price Action.

For tomorrow, immediate resistance for Nifty Spot now comes at 4865/4870 levels. Only above this, Nifty Spot will try to fill the Gap till 4905-4930 level, where again some selling pressure might emerge. On the downside, support for Nifty Spot comes at 4835 and 4810 levels. Below this, the next round of selling will come, for lower levels of 4770 and 4720.

4 Oct - Nifty Spot resistance at 4870-4905-4930-4960. Support at 4830-4810-4770-4740 - www.niftypower.com

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