30 Dec - Nifty View

Nifty opened below the zone of 4690-4720 today, briefly moved into the range during intraday, making a high near 4700 levels, before crashing in late market action to its next support of 4640. Short trades have been triggered today and should now have a stoploss (and Reverse) above 4720 on closing basis. Till Nifty does not give a close above 4720/ 4760 now, consider the trend as Down and Sell on Rallies. Believe in all moves of the market, even if it gives several whipsaws. Because seeing beyond the prices unfolding on the screen is something which is not possible in this market. There are no Fortune Tellers in the market, and Fortune Tellers seldom know the reality. Money can only be made here by religiously "Following" the prices and becoming a Student of the Market.

The Nifty option OI Charts are given below:


As we enter into a new series, the broad range forming as per the Options Charts is 4500 to 5000. The Bears have added maximum OI at 4700 CE strike today, and this level almost has equal OI in Calls and Puts. Hence, this level will again be important in the January Series, and also coincides with the level of 4720 given above. 4600 is also forming as a minor support for Nifty.

For tomorrow, immediate resistance for Nifty Spot comes at 4665/4670. Above this, it will head for its next resistance level of 4690. The zone of 4690 to 4720 is a No trading Zone as of now. Stay short below 4690 and reverse to Longs only above 4720/4725. On the downside, support for Nifty Spot comes at todays lows of 4635/4640. Below this, the Bears will have an upper hand and will try to push Nifty towards lower levels of 4610, 4585 and 4550 levels.

30 Dec - Nifty Spot resistance at 4665-4690-4720-4755, Support at 4635-4610-4585-4550 - www.niftypower.com

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