3 Feb - Nifty View

Nifty made a Doji today on Daily charts, signifying indecision among the traders. It just managed to closed above the falling trendline resistance, and the Bulls also managed to save the 200 DMA in intraday declines today. The highs and lows of today now become important for the continuation of this trend or the start of a correction. On the downside, another level to watch out will be 5205 level, which was the close 27 Jan, on which day the hanging man pattern was formed on Daily Charts. A decline below these levels would be the first sign of a correction, to be confirmed by a break and close below 5160 level. Till then, stay with the trend.

The Nifty option OI Charts are given below:

Today was another day in which the Bulls dominated on the Options front. A huge amount of 28 lacs+ OI was added by the Bulls between 5100 PE to 5300 PE strikes. On the other hand, the Bears largely remained absent, and did not add/ subtract much from their positions. Overall, 5100 to 5300 is the narrow range developing for this series, with 5200 being the battleground level between the Bulls and the Bears.

For tomorrow, immediate resistance zone for Nifty Spot comes again lies in the 5260-5290 area. If it crosses this zone, then a rally towards 5335/5340 and 5400 levels cannot be ruled out. On the downside, support for Nifty Spot comes at todays low of 5225/5230, and then near 5205 level. Below this, it can test 5180/5160 in intraday. As given earlier, 5160 will be short term trend decider level, as of now.

3 Feb - Nifty Spot resistance at 5260-5285-5310-5335. Support at 5225-5205-5180-5160 - www.niftypower.com

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