16 Nov - Nifty View

Nifty opened down today, traded rangebound near the unchanged mark for majority of the day, and then sold off near the end to close near its Lows of the day, near 5055 levels. Today's late afternoon movement would have converted a lot of Bulls to Bears. At NiftyPower, we booked our Positional Shorts today. Now, it is the time to Wait and Watch, what happens over the next 2-3 days, before deciding on the next trade. Fresh Shorts are definitely not advisable at this stage, as this move down does not look like an Impulsive Trending Move on the larger time frame. In fact, we are at the bottom of the broad range of 5000 to 5400 now. Longs also, have to wait till nifty gives a close above 5150 as of today. Hence, 5000 to 5150 is the immediate range to watch, without initiating any Positional trades.

The Nifty Option Open Interest charts are given below:

The option Charts turned more Bearish today, but the broader range remained at 5000 to 5400. There is a huge addition of 22 lacs+OI at 5100 CE level by the Bears. This level has become a minor resistance level now. In addition to that, the Bulls covered a huge amount of 21 lacs+ OI at 51oo PE and 5200 PE strikes. Apart from these big additions, small additions was done by the Bulls at 5000 PE and below strikes. 5100 is the immediate battlezone level after today's move. Combining this with the above given levels, 5130/5155 zone will be the toughest resistance zone for Nifty Spot going forward. This should also be the stoploss for those still holding on to shorts. The broad range remains at 5000 to 5400. Hence, Nifty may be closer to the bottom of the range, and any fresh shorts will have confidence only if it sustains below 5000/4980 now.

For tomorrow, immediate resistance for Nifty Spot comes at 5075/5080 levels. Above this, it can attempt higher levels of 5110/5130. The zone of 5130/5155 will be a tough resistance zone for Nifty now. Any fresh upmove will be seen only if it is able to close above this zone. Till then, Sell on Rallies at Resistance Levels should be the mantra for intraday traders. On the downside support for Nifty Spot comes at 5030/5010 levels. Intraday, some relief may be seen if Nifty declines towards these levels. A break of 5010 should open the gates for lower levels of 4975 and 4945.

16 Nov - Nifty Spot resistance at 5080-5110-5130-5155. Support at 5030-5010-4975-4945 - www.niftypower.com

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