26 Mar - Nifty View

Nifty had some erratic moves in the second half of last week. Finally, after 3 days of trading with volatility and giving 100+ point moves each day, it closed almost at the same level where it closed on Tuesday last week. The close was below the important level of 5330 Spot, and hence, the immediate short term trend should be considered negative till the time it stays below this level. As Friday also turned out to be an inside day, the highs and lows of Friday will act as stiff resistance/ support, and a move outside of this range should give a good move in the direction of the breakout. Hence, the Positional Shorts can now move their stoploss just above the High of Friday and reverse to Longs if this stoploss is taken.

The Nifty option OI Charts are given below:

On the Options front, Friday was the Bulls day out. They added a huge amount of 37 lacs+ OI between the three strikes of 5000 PE to 5200 PE. On the other hand, the Bears neither did much of addition nor did they cover any of their previous written Options. Overall, 5300 remains the 50:50 level for this series. 5200 is the biggest support, while 5500 is the major resistance. 5400 is a minor resistance as of now.

For Monday, immediate resistance for Nifty Spot comes at 5290/5295 level. Above this, it will head for its next strong resistance zone of 5320/5330, where it will face stiff selling pressure from the Bears. If however it is able to trade and sustain above 5330 Spot, then a short covering rally for 5400+ can come easily. On the downside, support for Nifty Spot comes around 5270 and then at 5245 levels. Below this, there is another strong support which wwill come near Friday's low of 5220 level. Break of 5220 can now lend some momentum to the downward move.

26 Mar - Nifty Spot resistance at 5290-5325-5355-5385. Support at 5270-5245-5220-5170 - www.niftypower.com

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