5 Dec - Nifty View

Nifty opened around the unchanged mark on Friday, traded rangebound till 1:30 PM, and then broke out to clear its resistance zone of 5015/5030 and closed at the high point of the day near 5060 levels. In has given a fresh breakout above 5015 now, and can easily target its next resistance zone of 5130/5150. On the downside, 5015/5010 are the immediate support levels, which the Bulls need to hold. Some shorts can be tried below 5015, with tight stoplosses. The larger trend remains Bullish till Nifty stays above 4900 for now.

The Nifty Option Open Interest charts are given below:

It was another day, which went completely in favour of the Bulls. They added more than 40 lacs+ OI between 4900 PE to 5100 PE strikes. The Bears, on the other hand, covered more than 22 lacs+ OI from 4800 CE to 5100 CE strike, and added only a negligible amount at upward strikes of 5200 CE. The Option Charts look only Bullish as of now. Since we are just at the start of the series, this bullishness can become very risky for the Bulls. If these overenthusiastic Bulls panic for any reason during the series, we may see a sudden downfall just as was seen last month in Nifty. As of now, 4700 is the biggest support and 4800 is a minor support for Nifty. 4900, 5000 and 5100, all are 50:50 levels as of now. The maximum OI at 5100 CE from the bears should make it a difficult level to cross and sustain from the Bulls.

For tomorrow, immediate resistance for Nifty Spot now comes at 5100/5105 levels. Above that, next resistance zone for Nifty Spot comes at 5130-5155 and 5180 levels. It will take a very special effort from the Bulls, if thy have to cross all these levels tomorrow. On the downside, immediate support for Nifty Spot now comes at 5035 and then at 5015. Till it stays above 5015, the intraday trend should be considered to be positive, and Buy on Dips should be the strategy. Below 5015, aggressive shorts can be taken for targets of 4990-4970 and 4945 levels.

5 Dec - Nifty Spot resistance at 5105-5130-5155-5180. Support at 5035-5015-4990-4970 - www.niftypower.com

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