25 Nov - Nifty View

On Expiry day, Nifty held on to the lows of Wednesday and made a strong recovery to close near the highs of the day. In Yesterday's Option Analysis, we had observed some dumb Call Writing by the Bears (more than 45 lacs+). These Bears were punished heavily today. Nifty has found a new support level of 4640 below the previous low of 4720 now. Now, unless this low is broken, it should again form a trading range before Breaking Out/ Breaking Down. Hence, the time for initiating some Positional trades is coming.

The Nifty Option Open Interest charts are given below:

In the December series, the Bulls added 27 lacs+ OI from 4300 PE to 4700 PE strikes today. On the other hand, the Bears added 31 lacs+ Oi from 4700 CE to 5100 CE strikes. Th highest open interest in Puts can be seen at 4500 PE as of now. On the call side, the highest open interest is at 5000 CE as of now. This is the broad range as of now. Interesting to not that the OI at 4800 PE is more than that of 4800 CE. This is the case when Nifty is comfortably trading below 4800 level. As and when Nifty reaches this level, the open interest at this level will give guidance on the direction of the coming wave.

For tomorrow, immediate resistance for Nifty Spot comes at 4760 and 4785 levels. Above this, it will head towards 4810 and 4855 levels, where again, the Bears are expected to put a lot of selling pressure. However, if the Bulls manage to sustain above 4860, the then targets of 4960 and 5030 will open up Positionally. On the downside, support for Nifty Spot comes at 4720 level. Below this, Nifty can again slide towards 4690-4665 and 4640 level. Below 4640 now, sub 4600 levels can come quickly. Today, Nifty has shown the first signs of a corrective upmove in this downtrend. Let This may continue for 1-2 days more, before resumption of the downtrend. Trade accordingly.

25 Nov - Nifty Spot resistance at 4760-4785-4810-4855. Support at 4720-4690-4665-4640 - www.niftypower.com

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