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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