4 Nov - Nifty View

Nifty opened down today on negative global cues, declined towards our support level of 5205 (actual low 5201) and then recovered to close near our resistance level of 5285 (actual high of 5281). 5225 to 5325 was the Gap Area which was skipped on the way down as well as on the way up. This area has been well traded now, and any move out of this range on closing basis basis should be considered to be a reliable move. On the upside, Nifty will face stiff resistance at 5305/5320 zone, above which, fresh rally may be seen towards 200DMA near 5400 level, with a minor hurdle at 5365. On the downside, 5230 and 5170 are the major supports, below which, a trending move will start.

The Nifty option Open Interest charts are given below:

The Bulls added 10 lacs+ open interest at 5000 PE to 5200 PE strike, and covered small amount of 2.5 lacs+ at 5300 PE strike. The Bears covered nearly 6 lacs at 5500 CE strike. Overall, the range as per the Options Charts now stands at 5100 to 5400, with 5300 being a minor resistance and 5200 being a minor support. A move outside the minor levels can lead to the upper or lower end of the range.

For tomorrow, immediate resistance for Nifty Spot comes at 5300/5305 levels and then at 5320/5330 levels. This will be the toughest zone for the Bulls, above which, a rally towards 5400+ is not ruled out. On the downside, support for Nifty Spot comes at 5250 levels. Below this, Nifty Spot will slide towards 5230-5205 and 5170 levels. Overall for tomorrow, consider the intraday trend to be down below 5230 Spot and Up above 5300 Spot. In between them, take both side trades with tight stoplosses.

4 Nov - Nifty Spot resistance at 5300-5325-5365-5405. Support at 5250-5230-5205-5170 - www.niftypower.com

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