12 Dec - Nifty View

On Friday, Nifty closed the Gap formed on 1st December, and traded with volatility between within the gap area. In the process, it has formed a Doji on Daily charts, and a decisive move may be just around the corner, if Nifty manages to move outside of the range of Friday. A move above 4920 Spot will be the first indication, and a move above 4960/4980 will confirm the breakout. On the downside, a break of 4840 will be the first indication of a breakdown, to be confirmed by a break of 4815/4800 on the downside.

The Nifty Option Open Interest charts are given below:

There was quite a bit of action from the Bears on Friday. They added a big amount of 28 lacs+ OI between 4800 CE to 5100 CE strikes. On the other hand, the Bulls covered 12 lacs+ OI at 5000 PE and 5100 PE strikes. 4900 has become a clear 50:50 level after Friday's move, and the overall range has shifted down to 4700 to 5100. Within this broad range, 4800 is a minor support, and 5000 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 4895-4900 levels. If it manages to sustain above this level, it will again target Friday's high of 4920. Above 4920, a mini breakout can be seen for next resistance levels of 4955 and 4985. On the downside, support for Nifty Spot comes at 4855/4845 levels. A break below this, Nifty Spot will head for lower level of 4815-4785 and 4745 levels.

12 Dec - Nifty Spot resistance at 4895-4920-4955-4985. Support at 4850-4815-4785-4745 - www.niftypower.com

Visit here for Nifty Tips and Nifty Option Tips