8 Feb - Nifty View

On Tuesday, Nifty had its second Red Day of the week, where the closed price was lower than the Open Price. It was still able to hold the lows of yesterday, which is an important reference level for aggressive traders to go short. On the upside, it is finding it hard to cross and sustain above 5400. Whether this consolidation will turn into a correction, or like earlier, Nifty will consolidate to breakout above 5400 next, remains to be seen. 5250 can be taken as a short term trend deciding level for now. Till Nifty is above this level, consider the trend as up only.

The Nifty option OI Charts are given below:

Both the Bulls and the Bears were subdued today. The Bulls added 12 lacs+ OI at 5300 PE and 5400 PE strikes, while the Bears added 13 lacs+ OI at 5400 CE and 5500 CE strikes. Overall, the Option Charts remain the same as they were yesterday. 5200 to 5400 is the immediate range, and 5300 is the battleground level between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 5355, and then at 5375/ 5380 levels. Above these, Nifty will head for 5405/5445 levels. On the downside, support for Nifty Spot comes near 5325 levels. Below this, the Bears can hope for a correction till 5285/5290 and 5250 levels.

8 Feb - Nifty Spot resistance at 5355-5375-5405-5445. Support at 5325-5285-5250-5225 - www.niftypower.com

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