16 Jan - Nifty View

Nifty has been consolidating for the last 3 trading days, post the breakout on 10th Jan. The upward momentum which usually follows a breakout is lacking in this upmove. Earlier, when it gave a breakout from 4720, then also it lacked the upward momentum. And now, similar moves are happening post the breakout above 4805. However, the Bulls are providing support on every fall. But fresh buying to lift the market up is missing. Fresh Buyers are required if this upmove is going to be real, and nifty is going to attempt bigger targets of 5200+. As of now, consider the trend as up till Nifty is giving a close above 4780/4800 levels, and Buy on Dips should be the strategy for traders, till these levels are not breached.

The Nifty option OI Charts are given below:

The Bulls are getting aggressive on the Options front now. They added 22 lacs+ OI from 4700 PE to 4900 PE strikes. The Bears, on the other hand, remained absent on Friday. They covered a small amount of OI at 4900 CE strike, but apart from that, preferred to stay out of the action. The range as per the Options Charts now stands from 4700 to 5000. 4800 is a minor support, while 4900 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 4875-4880 levels. Staying above these levels, the intraday trend will remain positive and Bulls will try to take Nifty higher towards next resistance zone of 4920-4960. On the downside, support for Nifty Spot comes at 4835 levels, below which, it will test lower levels of 4800 and 4770 levels. If breaks and closes below 4770, then this uptrend can be considered over and Positional shorts can be initiated.

16 Jan - Nifty Spot resistance at 4875-4895-4920-4960. Support at 4835-4800-4770-4740 - www.niftypower.com

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