20 Dec - Nifty View

In Yesterday's Nifty View, 4630 was given as the support, below which, 4550 was the next support given. Nifty traded between these levels, making an intraday low of 4555 and high of 4623, before closing near 4605 levels. The trend remains firmly down and traders should look to build short positions on all rises till Nifty does not a give a close above 4760. On the downside, today's low near 4550 remains a support area, as Nifty has not formed any good support between the 4550 to 4630 range. It will be better if it consolidates a little within this range, to form some clear support/ resistances, before giving the next big move.

The Nifty option OI Charts are given below:


From the Options Charts, the one strike that stands out is the big amount of 16 lacs+ covering at 4700 PE by the Bulls. These guys have clearly panicked and the OI at 4700 PE has reduced from over 90 lacs+ to just above 50 lacs+ as of today. The only fact in favor of the Bulls is that the Bears are also not building up OI aggressively. This has made the levels of 4600, 4700 and 4800, three levels as the 50:50 levels. Support level is at 4500, while 4900 and above are the major resistances.

For tomorrow, immediate resistance for Nifty Spot comes at 4625/4630 levels. Staying above this, it will head for higher level resistances of 4655/4660. Above 4660, short covering can take it to 4700+ levels, where again, the Bears will become active. On the downside, support for Nifty Spot comes at 4580 levels, below which, today's low of 4550/4555 is the nest support level. Below 4550, Bears will force another round of selling for sub 4500 levels.

20 Dec - Nifty Spot resistance at 4630-4660-4695-4730. Support at 4585-4550-4520-4480 - www.niftypower.com

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