19 Jan - Nifty View

Nifty had another nothing day on Wednesday, ending slightly down from Tuesday's close. Choppy trading after Trend Days continues. The trend remains up as long as it is trading above 4850. A break of 4900 will be the first indication of short term correction, and aggressive traders can initiate short positions below that level. On the upside now, a break past 4980-4990 can take it towards recent high resistance of 5100, which will be very tough to cross. 5100 is an intermediate top for Nifty, and a break and close above this will fuel a further rally by changing the medium term to positive.

The Nifty option OI Charts are given below:


There was a lot of minor adjustments made by the Option writers on Wednesday. The Bulls covered a small part of their positions at 5000 PE strike, and added 11 lacs+ OI from 4700 PE to 4900 PE strikes. On the other hand, the Bears covered some of their positions at 5000 CE and below strikes, but added a decent 6 lacs+ at 5100 CE strike. Overall, after today's move, 4800 to 5000 can be considered to be the immediate short term range, and 4700 to 5100 is the broader range. 4900 is the battlezone levels between the Bulls and the Bears, with a slight advantage to the Bulls as of now.

For tomorrow, immediate resistance for Nifty Spot comes around 4965 levels, above which it will again test the recent high of 4985/4990. Above 4990, it can fuel another short term rally towards 5025-5050 ad 5085 levels. On the downside, support for Nifty Spot comes around 4920 levels. Below this, the gap support at 4900/4890 will get tested. If falls below 4890, then 4860/4840 can come quickly.

19 Jan - Nifty Spot resistance at 4965-4985-5025-5050-. Support at 4920-4900-4860-4840 - www.niftypower.com


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