10 Feb - Nifty View

Nifty finally closed above its resistance area of 5400 today. This week was full of consolidation, as was expected after 5 consecutive weeks of upside. If Bulls manage to close the week above 5400 tomorrow, then it will send further fear in the Bear camp. 5320 Spot was the level below which aggressive Positional Shorts could have been opened. That level was never breached this week. For tomorrow and the coming week, traders can raise that level to 5350, and initiate short positions if Nifty moves below it. Till then, stay long or stay out, with stoploss at 5350.

The Nifty option OI Charts are given below:

It was another day that belonged to the Bulls. They added a huge 21 lacs+ OI at 5300 PE and 5400 PE strikes. On the other hand, the Bears did not do much addition, and covered small amount at 5500 CE and below strikes. For the Bears, the highest OI has moved from 5400 CE to 5500 CE. The open interest at 5500 CE is now almost equal to5300 PE and 5200 PE strikes, which have the highest OI on the Puts side. This level will be a tough level and the Bears seem ready to give a tough fight to the Bulls. If that is the case, then a correction might commence whenever Nifty reaches near to these levels.

For tomorrow, immediate resistance for Nifty Spot comes at 5410/5420 range. Staying above this, it will head for 5500+ levels, with minor resistance at 5445 and 5485 levels. On the downside, support for Nifty Spot now comes at 5365/5370 and then at 5350 levels. Below 5350, the Bears can hope for a correction till 5320-5285 and 5250 levels.

10 Feb - Nifty Spot resistance at 5415-5445-5485-5525. Support at 5370-5350-5320-5285 - www.niftypower.com

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