25 Jan - Nifty View

In Yesterday's Nifty View, it was given that a close above 5060 would propel Nifty towards its next resistance levels of 5130-5150. Nifty opened right at its resistance level of 5060 today, and then broke out on positive RBI News to reach the resistance zone of 5130-5150 today itself. With todays close, Nifty has also formed a Higher High, and now on any correction if it forms a Higher Low, it will signify an end to this long Bear Market that we have seen all through 2011. The level of 5060 would be a crucial support going forward, and a break and close below it would be the first signal for a correction to this upmove. Whenever that correction comes, the low made during the correction will be keenly watched now.

The Nifty option OI Charts are given below:

One day before the Expiry, no one would expect any significant addition in the the OI of Options. However, with the overconfidence of the Bulls riding high, they added a significant amount of OI from 4800 PE to 500 PE strikes. The Bears on the other hand, covered Big at 4900 CE and lower strikes, which should be expected at his stage. Going into the Expiry day, 5100 has become the battleground level for the Bulls and the Bears. 4900 is the support, while 5200 is the resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5130-5150 zone. Staying above this, the Bulls will try to take Nifty toward its 200 DMA at 5200+ levels, which is the toughest resistance for Nifty as of now. On the downside, support for Nifty Spot now comes at 5085 levels, below which the important support levels of 5050 will be tested again. As given earlier, a fall below 5050 will be the first sign of correction,to be confirmed by a break of 5000.

25 Jan - Nifty Spot resistance at 5130-5150-5180-5210. Support at 5085-5050-5025-5005 - www.niftypower.com

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