22 Dec - Nifty View

Nifty opened Gap Up today, due to positive global cues, traded rangebound during the day, and made a dramatic run upwards towards the end of the day, to close near 4700 levels. After the big sell off of yesterday, such a V shape recovery looked impossible till yesterday. But nothing is impossible in this market, and as traders, one must only follow the prices and nothing else. Nifty is at a very important juncture now. This might be a golden opportunity to create Positional Shorts with a tight stoploss of 4730 Spot. If Nifty manages to clear 4730 Spot, the immediate short term downtrend can be considered to be over, and we can see a recovery upto 4850/4920 levels before expiry. Hence, traders can Reverse their short trades if Nifty is able to close above 4730 tomorrow. Else, hold on to those shorts.

The Nifty option OI Charts are given below:


After the big sell-off of yesterday, the Bears had gained some confidence and big quantity of OI in Call Options. However, all that confidence was wiped out today, as the Bears covered more than 46 lacs+ OI between 4500 CE to 4800 CE strikes. The Bulls added nearly 10 lacs OI at 4600 PE strike, but apart from that, there was not much action from them. The Options Charts have also changed slight colors today. 4600 has now become a minor resistance, while 4900 is the resistance. In between, 4700 and 4800 are the battlezone levels between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 4720/4730 zone. Above 4730, this upmove started today is expcted to continue for higher levels of 4755/4760 levels, where again, it will face fierce resistance from the Bears. Above 4760, 4795/4800 levels will be the target for longs. On the downside, immediate support for Nifty Spot comes at 4670 and below that, at 4640/4635 levels. The intraday trend for tomorrow should be considered positive till Nifty stays above 4635 Spot now, and any dips can be utilized to Buy with a Stop and Reverse of 4635 Nifty Spot.

22 Dec - Nifty Spot resistance at 4725-4760-4795-4820. Support at 4670-4635-4600-4570 - www.niftypower.com

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