19 Mar - Nifty View

On Friday, Nifty opened on a positive note, on budget expectations, but fell and closed well in the negative after a volatile day. In the process, it broke some key levels, turning the short term momentum down. Positional shorts were triggered below 5350 Spot nifty, and those who could trade can now keep initial stop and reverse above 5400 nifty Spot level. On the downside, Nifty has just stopped around the Gap support area, which was created 9th march. The Bulls can have hopes of Nifty finding some support in this zone. However, the trend has turned down, and till Nifty is trading below 5350 Spot, utilize the rallies to build short positions.

The Nifty option OI Charts are given below:

The EOD Options Charts from Friday belong to the Bears, although, overall, volumes of OI addition in Options was low on Friday. The bears added nearly 15 lacs OI at the three strikes of 5400 CE, 5500 CE and 5600 CE strikes. On the other hand, the Bulls covered 13 lacs+ OI at 5200 PE strike. There was very little addition in OI done by the Bulls on Friday. Overall, 5300 to 5500 is now the narrow range for the series, and 5200 to 5600 is the broad range. 5400 is the battleground level as of now.

For tomorrow, immediate resistance for Nifty Spot now comes at 5320-5330 zone. Staying above this zone in morning trades, the Bulls will attempt for 5370 and 5410 levels. As given earlier, any rise to these levels will be a Selling opportunity, with a Stop and Reverse at 5400 on closing basis. On the downside, immediate support for Nifty Spot comes at 5290 level. Below this, the bears will have an upper hand and they will push nifty towards lower level supports of 5245-5220 levels.

19 Mar - Nifty Spot resistance at 5325-5370-5410-5435. Support at 5290-5245-5220-5175 - www.niftypower.com

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