26 Dec - Nifty View

Nifty had a dull day on Friday, when, after opening near its strong resistance resistance zone of 4750/4760,it could not sustain the gains, and fell under its own weight to below 4700 levels, but regained later to close above 4700. Till the time it maintains 4700 on closing basis, we will assume that this rally will continue and long trades will be preferred over short trades. If it closes below 4700/4690, then the Longs have to be reversed and converted to shorts. As of now, 4690 on the downside and 4760 on the upside are the levels to watch, for a fresh directional move.

The Nifty option OI Charts are given below:

On such a rangebound day, there was a good amount of activity from the Bears. They added a good amount of 15 lacs+ OI at 4800 CE and 4900 CE strikes. The Bulls on the other hand, added a small amount at 4600 PE and 4700 PE strikes, while covered a small amount at 4800 PE strike. Overall, going into the expiry week, 4600 to 4900 is the range for Nifty. 4700 is the battlezone level, while 4800 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 4730 and then the strong resistance zone at 4755/4760. The Bulls will have to do something special to cross this zone. Above this zone, Nifty Spot will target 4795/4800 levels. On the downside, support for Nifty Spot comes at 4680/4690 levels. If this level breaks, Bears will have an upper hand, and Nifty will slide further towards 4635/4610 levels. As given earlier, 4690 to 4760 is the trading range. Trade this range till Nifty gives a confirmed breakout/ breakdown.

26 Dec - Nifty Spot resistance at 4730-4760-4795-4810. Support at 4685-4660-4635-4610 - www.niftypower.com

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