28 Feb - Nifty View

Nifty had a Trend Down day today, and closed nearly 150 points from Friday's close. Today's movement would have shaken up a lot of complacent Bulls. In the process, Nifty Spot also broke and closed below its previous strong support of 5320. It might attempt to retest this level, in the coming days, and how it behaves at that level, will decide further course of action. As of now, the trend remains firmly down till it stays below 5320 spot. Positional shorts which were opened on the break of 5520 spot, can be booked here, and wait to see what happens on retesting of previous support levels.

The Nifty option OI Charts are given below:

The Bulls were active at 5200 PE and 5300 PE strikes, where they added a huge quantity of 25 lacs+ OI. The Bears added 21 lacs+ OI at 5400 CE to 5600 CE strikes. After today's movement, the levels of 5200 and 5300 still remains as the strongest support for Nifty. 5400 and 5500 are the battleground levels, while 5600 and above are the supports.

For tomorrow, immediate resistance for Nifty Spot comes at 5300/5320 levels. The Bears are not expected to give in easily at this resistance level now, and rise upto this level can be used to build short positions. Break and sustenance above 5320 level, however, will induce a short covering rally till 5375-5400 levels. On the downside, support for Nifty Spot comes at 5275/5280 level. Below this, it will test 5250 and 5220 levels, which are expected to provide good support and might arrest this correction for the time being.

28 Feb - Nifty Spot resistance at 53205375-5400-5455. Support at 5275-5250-5220-5180 - www.niftypower.com

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