14 Dec - Nifty View

On Tuesday, Nifty opened down on negative global cues, held on to its support of 4720 and made a recovery to 4800 level, sold off again to test 4730, before recovering dramatically in the last half hour of the trade, to close above 4800 level. Yesterday's Options Data showed a strong support at 4700 level, which was saved by the Bulls today. Going forward, a break of 4720 and a close below 4760 will be the first indication of weakness in the market. Till then, consider 4700 to 4900 as the trading range, until we get a breakout. Upside, resistance for Nifty Spot exists at 4810 and 4840/4850 levels. Crossing these levels, a test of 4900/4920 looks likely. The larger trend still remains down, and this rally will be looked at with suspicion till 4920 is not crossed on the upside. Above 4920, its a different game altogether.

The Nifty Option Open Interest charts are given below:


On the Options front, very less action was witnessed by both the Bulls and the Bears. The Bears added 5 lacs+ at 4700 CE and 8 lacs+ at 5100 CE strike, but did not do much at any other other strike. On the other hand, the Bulls covered small amounts at 4800 PE and above strikes. Overall, the Option Charts remain the same as yesterday. 4700 is a support, while 5100 is the resistance. In between, 4800 and 4900 are the 50:50 levels for both, the Bulls and the Bears. 5000 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes around 4820 levels. If sustains above this, then it will head for next strong resistance zone of 4840/4850. As given earlier, above 4850, a retest of 4920 resistance is likely, with minor resistance around 4880 level. On the downside, support for Nifty Spot comes at 4780/4785 levels. Below this, Nifty will slide towards 4745, 4720 and 4690 levels. Below 4690, the Bulls are likely to panic, and we may see some panic selling. However, after today's bounce, look to Buy the Dips tomorrow, till Nifty Spot stays above 4780 level.

14 Dec - Nifty Spot resistance at 4820-4845-4885-4920. Support at 4780-4745-4720-4690 - www.niftypower.com

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