7 Feb - Nifty View

Nifty has another "UP" day on Monday, although it made a Red Bar on Daily Chart by closing below the opening level. After today's move, Nifty has made another high. It is important to note that while Nifty is making a new high, indicators like RSI are not making new highs. Bearish Divergences are occurring on the charts. While the signal to short has still not come, it will be better to stay cautious with the Longs. Aggressive traders can try Positional Shorts below the lows of today, with tight Stoplosses.

The Nifty option OI Charts are given below:

On the Options front, it was a similar story, as in the recent past. The Bulls added a huge amount of 31 lacs+ OI between 5200 PE to 5400 PE strikes. The Bears also added a small amount of 6 lacs+ OI at 5400 CE strike, but apart from that, they did not do much. After todays move, 5300 has become the50:50 level, with almost equal amount of OI in the Calls and Puts. 5200 and 5000 are the major supports for this series, while there is no real resistance as of now. 5400 CE has the highest open interest, and hence, can be considered as some sort of a resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5375/ 5380 levels, above which, it will head for 5405/5445 levels. On the downside, support for Nifty Spot comes at todays lows near 5325 levels. Below this, the Bears can hope for a correction till at least 5285/5290 levels.

7 Feb - Nifty Spot resistance at 5375-5405-5445-5490. Support at 5325-5285-5250-5225 - www.niftypower.com

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