17 Jan - Nifty View

Nifty had another nothing day today, with the Bulls supporting it at lower levels. Today, inspite of the negative global cues, the support given by the Bulls clearly shows their intention. Now, whenever the resistances are tested, either tomorrow or after that, some fresh buying should emerge to give credence to this move. As given earlier, the Bullish theory will work only as long as Nifty is closing above 4770-4800 zone. Below this, the sentiment will turn Bearish again. Till then, follow the trend and Buy on Dips.

The Nifty option OI Charts are given below:

The highest addition today in ITM Options was by the Bulls at 4800 PE strike, where they added 6 lacs+ OI. Apart from that, there was very little activity at other strikes. The range for this month is now 4700 to 5000. 4800 is a minor support, while 4900 is a minor resistance. Looking at the contraction in volatility, traders can buy an Option Straddle of 4800 or 4900, and look for a breakout/ breakdown before the Expiry.

For tomorrow, immediate resistance for Nifty Spot comes at 4875-4880 levels. Staying above these levels, the Bulls will try to take Nifty to its next resistance zone of 4920-4960. On the downside, support for Nifty Spot comes at 4855 and 4835 levels. Below these, it will test lower levels of 4800 and 4770 levels. If breaks and closes below 4770, then shorts can be initiated.

17 Jan - Nifty Spot resistance at 4880-4895-4920-4960. Support at 4860-4835-4800-4770 - www.niftypower.com

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