18 Nov - Nifty View

On Thursday, Nifty finally broke down below 5000 and as expected, created some panic selling from the Bulls. Few traders would have been able to catch it, due to the fast movement. Market generally gives you a second chance, but when and how it will come, remains to be seen. Next Stop for Nifty can be near to today's low near 4900 level or near 4845 level. We still maintain that this is not the time to enter Fresh Shorts. Those who could enter fresh shorts at the break of 5000, should now maintain a stoploss above todays high of 5035/5040 now. Others wait for a pullback to Sell at higher levels. Nifty is fast approaching Oversold levels. Since the Trend remains down, No Long Trades can be advised. However, Resell only when the Chart structure becomes a little better. Never run after a missed train. Catch the Next One.

The Nifty Option Open Interest charts are given below:

The Option Charts have been dominated by the Bears this week. They continued this domination today also. A Huge amount of 62 lacs+ OI was added from 4800 CE to 5300 CE strikes. 4900 CE and 5000 CE saw the maximum addition pf 27 lacs+ and 12 lacs+ respectively. The Bulls added a decent amount of 11 lacs+ at 4900 PE strike, but covered a Huge amount of 30 lacs+ at 5000 PE and 5100 PE. With today's move, the Bears have converted the strong support of 5000 to a 50:50 level. The range has also been contracted from 5000-5400 to 4900-5200 now. Beyond this, further trending moves will be seen.

For tomorrow, immediate resistance for Nifty Spot now comes at 4950/4960 and then at 4995/5005 zone. Any move towards 5000 can be used to start building short positions now. On the downside, support for Nifty Spot comes around 4890/4900 level. Below this, it will slide towards 4840/4850 levels. As the Oscillators are at oversold level, we may see some bounce from these Support Levels.

18 Nov - Nifty Spot resistance at 4955-4995-5030-5055. Support at 4910-4890-4845-4810 - www.niftypower.com

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