28 Nov - Nifty View

On Friday, Nifty opened with a gap down, but recovered and closed that gap in intraday trade, and then again slid to close the day near 4700 level. In the process, it formed an Inside Day on Daily Charts. A break out of the range of an Inside Day generally leads to bigger moves in the direction of the trade. Hence, levels to watch for that break are now at 4690 on the downside and 4770 on the upside. New Positional trades can be taken once these levels are taken out.

The Nifty Option Open Interest charts are given below:


It was the first day of the series, and as expected, both the Bulls and the Bears added OI in various strikes of Calls and Puts. Most notable is the Open Interest addition of 19 lacs+ by the Bulls at 4800 CE and 5100 CE strikes. Th Bears added equivalent amount at 4700 PE and below strikes. This series starts with a broad range of 4500 to 5000. The Bulls have already built positions at 4700 PE and below strikes. The Bears on the other hand, haven't done much and needs to build some more resistance on the upside.

For tomorrow, immediate resistance for Nifty Spot comes at 4720/4725 levels. If it stays above these, it will attempt upper resistance levels of 4745 and 4770. As given earlier, breakout from 4770 can give bigger moves, which can led Nifty to 4860+ and much higher levels. On the downside, support for Nifty Spot comes at 4690 levels. Failure to hold this, will again lead to a retest of recent support of 4640. Below 4640, another 70-100 point fall can come quickly in Nifty.

28 Nov - Nifty Spot resistance at 4725-4745-4770-4805. Support at 4690-4670-4640-4575 - www.niftypower.com

Visit here for Nifty Future Tips and Nifty Option Tips