5 Jan - Nifty View

On Wednesday, Nifty traded rangebound for most part of the day, before turning volatile towards the end, and closed slightly lower near 4740 levels. The Bulls managed to save the Nifty from falling below its support zone of 4720/4725 today. But they were not able cross the resistance of 4800/4805 either. For the remaining part of the week, the zone of 4690/4720 on the downside and 4770/4805 on the upside will be deciding zones for further Bullishness of Bearishness. Both these zones can be treated at no trading zones. breakout or Breakdown from these zones can be used to initiate fresh positions in the direction of the Breakout/ Breakdown.

The Nifty option OI Charts are given below:

The Bulls added a small amount of 8 lacs+ OI from 4500 PE to 4700 PE strikes. The Bears also did not do much today, adding a small amount of 6 lacs+ OI from 4800 CE to 5000 CE strike. Overall, the range as per the Options Charts remains the same as yesterday. 4500 to 5000 is the broad range as per the Options Charts. 4600 to 4900 is a narrower range, with 4700 as a minor support, and 4800 as a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 4765/4770 levels. Above this, it will again attempt to test its strong resistance of 4800/4805. Above 4805, short covering can pull nifty up towards 4850/4870 and 4920 levels. On the downside, support for Nifty Spot comes at 4725/4720 levels, below which, the next support of 4690 will be tested. Below 4690, Bears will take control and push Nifty towards lower levels.

5 Jan - Nifty Spot resistance at 4765-4805-4850-4870. Support at 4725-4690-4660-4635 - www.niftypower.com

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