22 Mar - Nifty View

On Wednesday, Nifty opened on a flat note, but then started its steady climb up and closed nearly 100 points above the previous close. 5330 was the level, above which a short term trend reversal was expected. Nifty closed well above this level. Positional shorts, which had a stop and reverse of 5350, have been converted into Longs now. These longs can keep an initial Stop and Reverse at 5330 Nifty Spot on closing basis. Nifty is trading in a triangle right now, and breakout from this triangle can give a good directional move.

The Nifty option OI Charts are given below:

On the Options front, the Bears ran for cover today. They covered a huge quantity of 22 lacs+ OI from 5200 CE to 5500 CE strikes. On the other hand, the Bulls added a huge 15 lacs+ OI at two strikes of 5300 PE and 5400 PE. The level of 5300 has now become a minor support from the 50:50 level earlier. 5400 still remains the 50:50 level, and 5200 to 5500 is the current range for this series.

For tomorrow, immediate resistance for Nifty Spot comes at 5385/5390 level. Staying above this, it will head higher towards next resistance levels of 5405-5430 and 5460 level. On the downside, support for Nifty Spot comes now comes in the 5330 and 5320 zone. Till the time it stays above this zone, Buy on Dips should be the strategy for traders. However, if it sustains below 5330, then positional Shorts can be opened with a tight stop and reverse of 20 points.

22 Mar - Nifty Spot resistance at 5385-5405-5430-5460. Support at 5330-5290-5255-5230 - www.niftypower.com

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