29 Dec - Nifty View

On Wednesday, Nifty almost threatened to give a breakdown below 4690 Spot, but the Bulls just about managed to save it for another day, and Nifty closed just above the important level of 4700. However, it did break and close below 4720, which was another good support level. On Wednesday, Nifty traded within a 30 point range of 4690 to 4720 for most part of the day. A breakout/ breakdown from this narrow range would be the first indication of bigger moves ahead. The next trades are simple. Long above 4720 and Short below 4690. In between, its better to just sit and watch from the sidelines.

The Nifty option OI Charts are given below:

One day before the Expiry, the Bears added good quantity of 16 lacs+ OI at 4700 CE and 4800 CE strikes. The Bulls covered a huge amount of 26 lacs+ at Put Options of same strikes. The day clearly belonged to the Bears, and the Expiry seems to be going their way also. 4700 is the battlezone level for tomorrow, and as Nifty closed right at that level, a move above the 4720 would be considered positive, and a move below 4690 would be considered negative.

For tomorrow, immediate resistance for Nifty Spot comes at 4720/4725 levels. Trading above this, it will head for next strong resistance of 4760 and then 4800. On the downside, support for Nifty Spot comes at 4690/4685 levels. Below this, the recent support of 4640 is expected to be tested. Break of 4640 can bring some panic selling in the Nifty.

29 Dec - Nifty Spot resistance at 4720-4760-4800-4820. Support at 4685-4660-4635-4600 - www.niftypower.com

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