12 March - Nifty View

Nifty had a Doji candle on weekly charts last week. It was a truncated week, and on Friday, it opened with a gap, and continued to rise, leaving the gap open. We are heading into the budget, with the Nifty crucially poised within the range of 5300 to 5400. A breakout/ breakdown from this range can easily lead to a next 100 point move in Nifty Spot. Within this range, intraday trades will yield better results than positional ones.

The Nifty option OI Charts are given below:

On Friday, there was a huge addition of nearly 12 lacs OI at 5300 PE by the bulls. Apart from that, there was nothing much that happened in the open interest of other strikes of options. Overall, 5200 PE has the highest OI for the Bulls, followed by 5000 PE and 5300 PE. For the Bears, the maximum OI is at 5600 CE, followed by 5500 CE. 5400 is the 50:50 level as of now.

For Monday, immediate resistance for Nifty Spot comes at 5370/5395 zone. Above this, the Bears can run for cover, which can take nifty towards higher levels of 5425-5460 levels. On the downside, support for Nifty Spot comes at 5325/5320 levels. Below this, the Bears will have an upper hand, and Nifty Spot will slide further towards 5290-5250 and 5220 levels.

12 Mar - Nifty Spot resistance at 5370-5395-5425-5460. Support at 5320-5290-5250-5220 - www.niftypower.com

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