Nifty had a rangebound choppy day on tuesday, with both side movements and closing near the centre of the range. Positional shorts, triggered on the break of 5350, can now keep a stop and reverse at the same level on closing basis. Although the short term trend is down below 5350, the downward momentum has not come and there are multiple supports in the 5100-5230 range on the downside. Hence, better to be safe on the short trade, as a close above 5350 can trigger a sharp short covering rally.
The Nifty option OI Charts are given below:
There was no significant addition in open interest done by either the Bulls or the bears today. Hence, the overall picture as per the Option Charts remains the same as they were yesterday. 5300 and 5400 have now become the battleground levels between the Bulls and the bears. The overall range for the month is from 5200 to 5500.For tomorrow, immediate resistance for Nifty Spot comes at 5290/5295 levels. Above this, the next significant resistance zone is at 5320/5330 level. If trades and sustains above 5330 Spot, then a short term trend reversal can happen. On the downside, immediate support for Nifty Spot comes in the 5240/5230 zone. Below this, it can quickly slide towards lower level supports of 5200-5175 and 5140 levels.
21 Mar - Nifty Spot resistance at 5290-5320-5350-5370. Support at 5235-5200-5175-5140 - www.niftypower.com
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