In Yesterday's Nifty View, we identified 4900 and 5030 as the immediate breakout/ breakdown levels, beyond which, the next 100 point move was expected. Nifty opened gap down below 4900, and made a low near 4820. There was not much trade possibility during intraday, but the positional shorts, taken on break of 4980 and 4960, have given good gains already. The Gap area of 4870 to 4905 will be the toughest resistance for Nifty and immediate stoploss for aggressive shorts. Till this zone is crossed and sustained, keep looking for new shorting opportunities. Positional longs should now be tried only on a close above 4960.The Nifty option Open Interest charts are given below:
The Options table tells a different than what was witnessed on the screen today. Despite the recent falls, the Bulls are expecting the levels of 4800 and 4700 to hold. Big amount of OI was added at 4700 PE and 4800 PE strikes. Some covering was also done by the Bulls at 4900 PE and above strikes.On the other hand, the Bears mainly added OI at 4900 CE strike. Not much addition was done at other strikes. Overall, from the Options data, the range is between 4800 to 5100/5200. In between, 4900 and 5000 are the 50:50 levels as of now. The Options table as of now points to recovery ahead. However, this can change colors quickly. Hence, it should be taken only as an indication, to be confirmed by the Price Action.
For tomorrow, immediate resistance for Nifty Spot now comes at 4865/4870 levels. Only above this, Nifty Spot will try to fill the Gap till 4905-4930 level, where again some selling pressure might emerge. On the downside, support for Nifty Spot comes at 4835 and 4810 levels. Below this, the next round of selling will come, for lower levels of 4770 and 4720.
4 Oct - Nifty Spot resistance at 4870-4905-4930-4960. Support at 4830-4810-4770-4740 - www.niftypower.com
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