11 Nov - Nifty View

In the Nifty View of 9 November, it was given that a break of 5250 looks more likely as of now than a breakout above 5330. On Wednesday, nifty traded rangebound in the morning, and then crashed below our support levels of 5265/5250, to make a low near 5211, and closing near that level. On Friday, Nifty's open will be based on the global cues, but where it goes after opening will depend on the internals. As far as the levels are concerned, the trend remains down till Nifty Spot stays below 5265 now. Any rally towards that level can be used to build shorts. Nifty has broken down from the range of 5250 to 5330, and any trade at this moment should be Short only, TILL it gives a close back above 5250/5260. On the downside, the supports would exist at previous breakout levels of 5175/5150. Some profits should be booked in that zone. If nifty breaks below 5150 also, it can trigger panic among the Bulls.

The Nifty option Open Interest charts are given below:

The Bears had started building their open positions from Tuesday, and they continued to build pressure on Wednesday by adding a good amount of 14 lacs+ open interest from 5100 CE to 5300 CE strikes.The Bulls on the other hand are building support at lower strikes, and they added 13 lacs+ at 5000 PE and 4900 PE strikes. Overall, the broad range for this market is 5000 to 5400. 5100 is a support, 5200 a minor support now, and 5300 a minor resistance.

For tomorrow, immediate resistance for nifty Spot comes at 5250/5265 levels. Any recovery to these levels may see fresh selling from the Bears. However, if the Bulls manage to sustain Nifty above this levels, then a run towards 5300+ levels can be seen again. The real breakout, however, will come only above 5330 levels. On the downside, the support for nifty spot comes at earlier breakout zone of 5175/5150. Some sort of intraday support can come in this zone. Break of these can create panic among the Bulls.

11 Nov - Nifty Spot resistance at 5260-5285-5305-5330. Support at 5205-5175-5150-5130 - www.niftypower.com

Visit here for Nifty Future Option Tips