3 Jan - Nifty View

On Monday, Nifty closed slightly up after declining to 4588 intraday, forming a sort of Bullish Hammer candlestick on Daily Charts. Tomorrow, if it is able to sustain above the closing price of today, then the Bulls may attempt a rally towards 4690/4720 zone. What happens in that zone remains to be seen.

The Nifty option OI Charts are given below:

Today, the Bulls added 21 lacs+ OI from 4300 PE to 4600 PE strikes. On the other hand, the Bears added a smaller amount of 14 lacs+ OI from 4600 CE to 4900 CE strikes. The range developing for this series as per the Options Charts is 4500 to 5000. Supports are at 4600 and below levels. Resistances are at 4700 and above levels.

For tomorrow, immediate resistance for Nifty Spot comes at 4645 levels. Above this, it will test its next resistance at 4670 . Above 4670, Nifty will again head towards the No Trading Zone of 4690 to 4720. Both the Bulls and the Bears are expected to fight it out in this zone, and it is better to watch who wins before initiating a trade in this zone. Above 4720, we can witness a short covering rally. And below 4690, the downtrend will remain intact. on the downside, support for Nifty Spot comes at 4620 and 4590 levels, below which the recent lows of 4550 and 4530 will be tested.

3 Jan - Nifty Spot resistance at 4645-4670-4690-4720. Support at 4620-4590-4555-4530 - www.niftypower.com

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