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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