23 Mar - Nifty View

Nifty had big moves in the last two trading days. These moves were in opposite directions, the first changing the short term trend to UP, which turned out to be a whipsaw, and the second, changing it back to down. Yesterday, it was given that Positional Shorts can be opened if Nifty Spot trades below 5330. Those Positional Shorts were triggered yesterday and are already in more than 100 points profit. Traders can keep a stoploss at cost for these shorts, and ride the trend till Expiry. 5200-5150 is the support zone to watch out for, as many moving averages, including the 200 DMA is lying in this zone.

The Nifty option OI Charts are given below:


On the Options front, the picture is completely opposite to that of yesterday. Yesterday, it was the bears who ran for covering their positions at various strikes, and today, it was the Bulls turn. They covered a Huge 55 lacs+ open interest from 5000 PE to 5500 PE strike. This one move near the Expiry seems to have dented all hopes from the Bulls. On the other hand, the Bears added an equally Huge 44 lacs+ open interest from 5100 CE to 5500 CE strike. Overall, 5500 and 5600 have become the major resistances for Nifty for this series now. 5200 to 5400 is the narrow range, while 5300 has now become the 50:50 level.

For Friday, immediate resistance for Nifty Spot now comes at 5245-5250 levels. Staying above this, the Bulls can hope for a recovery upto 5270-5290 levels, which will give a good opportunity to create Short positions, with Stop and Reverse at 5330 level. On the downside, support for Nifty Spot comes at 5180-5185 level, below which, lies the 200 DMA near 5160 level. Some support is expected to come at these levels, but how far it can bounce, is to be see. Trend is down, hence, it is better to follow the Sell on Rises, till Nifty gives a close above 5330 now.

23 Mar - Nifty Spot resistance at 5245-5270-5290-5330. Support at 5185-5160-5130-5070 - www.niftypower.com

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