8 Nov - Nifty View

On Friday, Nifty opened up within the High Resistance Zone of 5310-5330 pointed out in the Nifty View of 4th November, and gave up the gains by end of day, to close near the closing level of Thursday. The levels remain the same for the coming week. 5300/5330 is the strongest resistance zone, which the Bulls need to cross. On the downside, the supports exist at 5260/5230 levels, below which, the Bears will take over. Till we get a Breakout/ Breakdown from this range, this will continue to be a Day Traders and Option Writers Market.

The Nifty option Open Interest charts are given below:

Looking at the near strike price Options, the Bulls have added a small amount of 8.5 lacs+ OI at 5200 PE to 5400 PE strikes. The Bears covered a small amount at 5300 CE and added a small amount at 5400 CE strike. The big additions were at OTM Options of 4900 PE by the Bulls and 5500 CE by the Bears. The range as per the Options Charts is 5000 to 5400. A narrower range is from 5100 to 5400, with 5200 as a good support, and 5300 a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes near 5290/5295 levels. Above this, it should again head for previously mentioned strong resistance levels of 5325/5330. Above 5330, Nifty may head towards 5400+ levels, with a minor hurdle at 5365 level. On the downside, support for nifty Spot comes at 5260 level. Below this, it will test lower supports of 5230/5205/5170. Intraday trend will remain down below 5260, hence stay short below this level.

8 Nov - Nifty Spot resistance at 5295-5325-5365-5395. Support at 5260-5230-5205-5170 - www.niftypower.com

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