23 Feb - Nifty View

Nifty finally had a good down day on Wednesday, and closed one of the Gaps, which was formed last week. The second Gap Area lies between the 5460 - 5430 zone, and it can provide some support to the Nifty, in case it falls further. Aggressive Shorts have already been triggered today, and they can have a Stop and Reverse at 5630 Nifty Spot level as of now. The Medium Term trend still remains positive, till the time Nifty pot is trading above 5300/5320 levels.

The Nifty option OI Charts are given below:

One day before the expiry, any major addition in the Options Open Interest is not expected. However, with today's fall, the Bears jumped at the opportunity and added a huge quantity of 39 lacs+ OI from 5500 CE to 5700 CE strikes. Whether this huge addition backfires at them or turns out to be a smart move, we will come to know by tomorrow. The Bulls did not do any addition, and covered their positions at almost all strikes, as expected. Going into the Expiry day, both the levels of 5500 and 5600 are the 50:50 levels.

For tomorrow, immediate resistance for Nifty Spot now comes at 5520/5530 levels. Staying above this, the next strong resistance will come at 5550/5555 levels. Above 5555, the Bulls will again try to push it towards 5590/5595 levels, above which lies the strong resistance of 5630. On the downside, support for Nifty Spot comes at 5480 levels. Below this, lies the Gap Zone of 5460-5425. If and when this Gap is closed, the next follow-up move in Nifty will be keenly watched to decide on the next direction of the trade.

23 Feb - Nifty Spot resistance at 5525-5555-5590-5625. Support at 5480-5460-5425-5390 - www.niftypower.com

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