30 Jan - Nifty View

Nifty continued its relentless upmove on Friday, and had a consecutive fourth positive weekly closing. The trend firmly remains up, but the market is now waiting for a correction. We have now seen three days of declining volumes with increase in price. These volumes will only pick up if and when Nifty clears and closes above its 200 DMA comfortably. Secondly, there are also two big resistances of 200 DMA and the declining trendline. Coupled with that, the Stochastics and RSI on Daily Charts are in overbought zone now. All these factors will make the zone of 5220-5250 the toughest to cross for Nifty. On the downside, the supports built at 5050 and 4900 should hold, for the Bullish picture to remain intact.

The Nifty option OI Charts are given below:

Second day of the series saw some good writing from the Option traders. The Bulls added a huge amount of 30 lacs+ OI from 4800 PE to 5000 PE strikes. The Bears were mostly active at 5100 CE and 5200 CE strikes, where that added 20 lacs+ OI. Overall, the February series is narrowly poised, with the range coming between 5000 to 5200 levels, and 5100 being a minor support level.

For tomorrow, immediate resistance for Nifty spot comes at 5210-5230 levels. The Bears have their best chance to stall this upmove over here, coz after this, the next major resistance comes above 200 DMA at 5285 level. On the downside, support for Nifty Spot comes at 5170-5175 levels, below which, the next supports at 5140-5125 and 5090 will be tested. As given earlier, the Short Term trend remains up till 5050 levels, and any correction till there will be healthy for Nifty.

30 Jan - Nifty Spot resistance at 510-5230-5260-5285. Support at 5175-5140-5125-5090 - www.niftypower.com

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