13 Feb - Nifty View

Last week, Nifty formed on a Doji on weekly charts, signifying a pause in the current ongoing uptrend. This was the much required pause, after 5 weeks of uptrend. Also, Nifty had made a Bearish engulfing candlestick on Tuesday last week, which was not confirmed. Infact, the lows of Tuesday, at 5322 Nifty Spot, were not breached for the entire week. This has now become an important low for Swing Traders, and aggressive Shorts can be opened if Nifty breaches and closes below this level. On the upside, the highest close for Nifty was on Thurday, however, this breakout also failed and NIfty declined to come back within the range on Friday. Thus, overall, there were two whipsaw moves, both for the Bulls and the Bears, in the consolidation of last week. Now, after this Doji week, the 100 point range of 5320 to 5420 will be the deciding range for the coming week. A move past this range can be taken as a breakout trade, with stoploss if Nifty moves back into the range. Within this 100 point range, choppy moves are expected.

The Nifty option OI Charts are given below:

The Bears were quite active on Friday, adding nearly 21 lacs OI between 5400 CE to 5700 CE strikes. On the other hand, there was very little addition by the Bulls. They added only a small amount of OI 5400 PE strike. Overall, option data suggests 5300 to 5500 as the range, with 5400 as the battleground level between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 5395/5400 levels, above which, comes the breakout level of 5420. Above 5420, we can see a mini breakout towards 5500+ levels, with minor resistances coming at 5445 and 5485 levels. On the downside, support for Nifty Spot comes at 5355 levels. Staying below this, Bears will push it towards its support level of 5325/5320. A break and closing below 5320 level can start a short term correction in Nifty.

13 Feb - Nifty Spot resistance at 5395-5420-5445-5485. Support at 5355-5320-5285-5250 - www.niftypower.com

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