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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