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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