27 Feb - Nifty View

Nifty had a decent correction last week, in which it closed both the Gaps that were created in the previous week. It is a cautious correction till now, more like profit booking, rather than fresh shorts entering the system. The medium term trend remains positive till Nifty Spot is closing above 5300/5320 levels. Short term remains negative below 5530/5520 spot now. Aggressive shorts, that were created on break of 5520 spot can now lower their stoplosses from 5630 to 5530 on closing basis.

The Nifty option OI Charts are given below:

In the near strike options, the Bulls added 20 lacs+ OI from 5100 PE to 5400 PE strikes. On the other hand, the Bears added 17 lacs+ OI from 5500 CE to 5800 CE strikes. At the start of the series, the Bulls are building support at 5300 and below levels. The Bears are cautious as of now, and there is very little OI in Call Options as of now. 5500 is the 50:50 level as of now, and 5300 to 5700 is the range for the series.

For tomorrow, immediate resistance for Nifty Spot comes at 5455/5460 levels. Staying above this, the Bulls will be in control, and will likely take Nifty to test higher level of 5520/5530, with minor resistance at 5480. On the downside, support for Nifty Spot comes at5420 levels. Below this, the Bears will have an upper hand, and the ongoing correction can continue till 5390/5370 levels. Below 5370, the all important support of 5320 is likely to be tested again.

27 Feb - Nifty Spot resistance at 5460-5480-5520-5550. Support at 5420-5390-5370-5320 - www.niftypower.com

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