3 Oct: Nifty View

Nifty closed the month of September at 4940, down from its monthly open of 5109. Overall, the month of September was a trading month, with volatile moves between 4800 and 5200 for Nifty. It is still trading within the range, and we should expect no breakout/ breakdown till this broad range breaks on either side. Immediate support for Nifty Spot is placed at 4900 levels, while resistance is at 5030/5050 levels. Break of these levels can give the next quick 100 point move.

The Nifty option Open Interest charts are given below:


The Options OI data at the start of the series indicate that traders are betting on a similar range as last month for October also. 4800 is the major support, with highest OI at 4700 PE and 4800 PE strikes, while 5200 is the resistance, with maximum OI at 5200 CE strike. 4900 is a minor support, while 5100 is a minor resistance. 5000 is the 50:50 level as of now. Currently, Bears are seen adding OI at 4900 and above levels, while Bulls are adding OI at 4900 and below levels. Hence, this level will be the deciding level for the series, and either camp is not going to give it up so easily.

For tomorrow, immediate resistance for Nifty Spot now comes at 4950/4960 levels. Staying above this, it will again target 5000+ levels, above which, the strong resistance zone of 5030/5050 stands. On the downside, immediate support for Nifty Spot comes at 4900/4905 levels. Below this, the short term trend becomes negative, and the floodgates may open for lower levels of 4875 and 4830.

3 Oct - Nifty Spot resistance at 4960-5005-5030-5055. Support at 4930-4905-4875-4830 - www.niftypower.com

Visit here for Nifty Option Tips and Nifty Future Tips

Do not forget to see our Festival Special Offer on www.niftypower.com