3 Nov - Nifty View

On Wednesday, Nifty opened with a Gap Down on negative global cues, but quickly recovered above our support level of 5230, and steadily climbed up to make a high at 5300 levels, before declining again to close near the all important level of 5250. It has traded within the Gap Area of 5230 to 5330 for two days now. Any move outside of this Gap Area, will provide the next clue for a bigger move, Till then, keep trading the range.

The Nifty option Open Interest charts are given below:


There is nothing much that was done in the ITM Options today, except for a small addition of 5 lacs+ OI at 5100 PE strike by the Bulls. However, there is the now usual addition of big smount of open interest addition at OTM strike of 4700 PE and 4800 PE. Also there is a big amount of 10 lacs+ covering at OTM strike of 4900 PE. However, these additions/ subtractions haven't changed the range as per the Option Charts. 5300 is a minor resistance, while 5200 is a minor support. This also goes with out level of 5230 and 5330. Support exists at 5100 and below levels, while 5400 is the biggest resistance as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5260 levels, above which, once again the Bulls will aim for 5285/5310/5330 levels. Above the zone of 5330/5340, we should have a fresh breakout for 5400+ levels with a minor hurdle at 5365. On the downside, support for Nifty Spot comes at 5230 level. below this, next important supports to watchout are 5205/5170 and 5150. Below 5150, we may see some panic selling in the market.

3 nov - Nifty Spot resistance at 5260-5285-5310-5330. Support at 5230-5205-5170-5150 - www.niftypower.com

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