8 Dec - Nifty View

Nifty opened flat today, but quickly broke above Monday's high and did an intraday rally towards 5100, but gave up its gains towards the end to close near 5050 levels. After the Doji of Monday, today's move above the Day High should have led to a breakout. A close near to the day's low open the possibilities of a failed breakout. Now once again, the levels of 5000 on the downside and 5070 on the upside become important for a breakout/ breakdown. A move above or below these levels can be used to initiate Positional Trades with tight stoploss.

The Nifty Option Open Interest charts are given below:

The Option Charts reinforces the indecision among the trades. The Bulls added a small amount of 18 lacs+ OI from 4800 PE to 5200 PE strikes. From the Bears side, addition of 8 lacs+ OI at 5300 CE shows the lack of conviction. There was very little action at the ITM Options by both the Bulls and the Bears. Real support from the Options Charts comes at 4800 and Resistance above 5200 levels. In between, 4900, 5000 and 5100, all are the 50:50 levels between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot now comes at 5065/5070 levels. If it manages to sustain above this, it will again head for 5100+ levels. Above 5100, next level of resistances comes at 5130/5135 and 5165 levels. Above 5165, some panic short covering by the weak Bears can take Nifty towards 5200+ levels. However, 5100/5130 zone will be the toughest resistance for Nifty to cross on the upside now. On the downside, support for Nifty Spot comes between 5030/5015. Below 5015, Bears will have an upper hand, and they can push Nifty to below 5000 levels, towards 4965/4940 levels.

8 Dec - Nifty Spot resistance at 5070-5100-5130-5165. Support at 5015-5000-4965-4930 - www.niftypower.com

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