1 Dec - Nifty View

Nifty opened down today, and traded in a volatile manner between 4750 to 4850, before finally closing up near 4840 levels. Today was a sort of shake out move, which would have made many weak Longs to exit their positions. The trend remains up as long as Nifty is trading above 4800/4770 levels. Upside resistances to watch out are at 4910/4960/4990 and 5015. Nifty can turn back from any of these levels, however, till it does not give a Short Signal, stay with the trend and trade as per the levels. No point in trying to predict the Tops and Bottoms.

The Nifty Option Open Interest charts are given below:

If yesterday it belonged to the Bears, today's Option Charts belong to the Bulls. There was no major action at any of the strikes, except for a major addition of 17 lacs+ OI at 4700 PE by the Bulls. The levels of 4700 now becomes the biggest support level for this series with over 80 lacs+ of OI already. Combining this with our support level of 4690, a short below 4690 would be an obvious trade. However, it seems unlikely as of now. The first major resistance as per the Options Charts is at 5000. 4900 is a minor resistance, while 4800 is a minor support.

For tomorrow, immediate resistance for Nifty Spot comes at 4860/4865 levels. If sustains above this, it will head for 4905/4910 kind of levels. Above 4910, 4960 and 4990 can come quickly. If it gets closer to 4990/5000, a Short trade will be on with a tight stoploss of 30 points. On the downside, support for Nifty Spot comes at 4815/4820 levels. If moves below this in morning trades, it can again slide upto 4790/4770 levels. A break of 4770 may now bring panic for lower levels of 4720 and 4690.

1 Dec - Nifty Spot resistance at 4865-4885-4910-4960. Support at 4815-4790-4770-4750 - www.niftypower.com

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