15 Nov - Nifty View

On Monday, Nifty opened Gap Up on positive global cues, but gave up all its gains to close in the negative zone, and below its breakout zone of 5170/5150. Today's move once again reinstates the fact that as traders, we must look at the technicals of the market that we trade, and not other markets. In Yesterday's Nifty View, it was given that the trend remains down below 5260 on Nifty Spot and 5230/5260 was a probable reselling area. Incidentally, 5228.90 was the high of the day. Global cues do affect the Opening Trades, but where Nifty goes from there, depends entirely on the internal technicals. Positional traders can now keep a stoploss of 5230 for Nifty Shorts. On the downside, 5130 and 5085 are two important support areas to look out for, and probable profit booking areas for shorts created above 5260.

The Nifty Option Open Interest charts are given below:


After many days, we saw both the Bulls and the Bears being active in ITM Options today. The Bulls added 17 lacs+ OI between 4900 PE to 5200 PE strikes, the maximum being at 5100 PE. The Bears added 12 lacs+ OI between 5100 CE to 5400 CE strikes, the maximum being at 5200 CE. Overall, the picture from Options Charts remains unchanged from yesterday. Range is 5000 to 5400, with 5200 as the battlezone level.

For tomorrow, immediate resistance for Nifty Spot now comes at 5150/5155 levels. Above this Nifty Spot will attempt 5180/5185 levels. Above 5185, the failed breakout theory will be nullified and choppy trading will continue between 5180 and 5230 levels. On the downside, support for Nifty Spot comes at 5130/5110 level. If this level breaks, next support levels come at 5085 and 5030 levels. Although we may see a bounce from any of the support levels, any Longs below 5150 Spot will be risky in nature, and should have very tight stoplosses.

15 Nov - Nifty Spot resistance at 5155-5185-5210-5230. Support at 5130-5110-5085-5030 - www.niftypower.com

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