24 Jan - Nifty View

Nifty had another nothing day today. Today was the second consecutive day, when it got resisted near 5060 levels. Incidentally, 5061 Spot was the recent Highest Closing for Nifty. After that, it made a top near 5100 levels, but closed below 5060. Hence, we can assume that a close above 5060 can further propel it upwards towards its recent top of 5100, or even higher this time towards 5130/5150 levels. On the downside, a close below 4990/4985 Spot is what would turn the short term down. As Expiry is nearing, we may get a decisive move beyond these levels soon.

The Nifty option OI Charts are given below:

Two days before Expiry, one expects some profit booking from the Option writers. But this is the time for overconfidence in the Bull Camp, who continued to add big amount of OI. Over 16 lacs+ of OI was added by the Bulls at the two strikes of 4900 PE and 5000 PE. There was also a surprise addition of 10 lacs+ OI at 5200 CE strike by the Bears. One of these writers will be punished on or before the Expiry gets over. Which camp it will be, is anybody's guess. Overall, the range as per the Options Charts remains at 4900 to 5100, with 5000 as the battleground level between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 5055-5060 levels. Above this, it will meet resistance at 5075-5100 levels, where again the Bears are expected to give stiff resistance to Nifty. As given earlier, a close above 5060 will open the doors for 5130-5150 for Nifty. On the downside, support for Nifty Spot comes at 5025-5020 levels, below which, it will slide towards 5000/4985 and 4950 levels.

24 Jan - Nifty Spot resistance at 5055-5075-5100-5130. Support at 5020-5005-4985-4950 - www.niftypower.com

Nifty Tip - Nifty Future Tips and Nifty Option Tips