6 March - Nifty View

Nifty broke below its support of 5320/5325 in the morning trades on Monday, and then had a steady slide towards 5265 levels, before closing around 5280 levels. In the process, it once again closed below the support line of 5320. Last time it did so on 27th Feb, and thereafer had a good recovery the very next day.Tomorrow is going to be a news heavy day, and hence, traders who are short can now raise their stoploss to 5330 Spot on closing basis. However, Positional Longs will only be entered if Nifty manages to close above 5400 tomorrow. Some volatility can be expected in tomorrow's trade due to the News Heavy Day, and hence, intraday trades can be avoided.

The Nifty option OI Charts are given below:

Ahead of the Big News day, both the Bulls and the Bears seem to have added huge positions today. The Bulls added a huge number of 20 lacs+ OI from 5000 PE to 5200 PE strikes, while covering 6 lacs+ OI at 5300 PE strike. The Bears were primarily active in 5300 CE and 5400 CE strikes, where they added 11 lacs+ open interest. Ahead of the Election Results, 5200 is the biggest support for Nifty, with the highest open interest at 5200 PE strike. 5400 and 5500 are the 50:50 levels as of now. 5600 CE has the highest OI in Calls, but the number is not big enough to term it as a major resistance.

For tomorrow, immediate resistance for Nifty Spot now comes around 5290 level, above which, it will now face major resistance at 5320/5325 Spot levels. Trading and sustaining above 5325 Spot will be the first indication of a short term trend change, to be confirmed by a close above 5400 now. On the downside, support for Nifty Spot comes at 5250 levels. Below this, the Bears will continue to push it towards lower supports of 5220-5180 and 5145 levels.

6 March - Nifty Spot resistance at 5290-5325-5370-5395. Support at 5250-5220-5180-5145 - www.niftypower.com

Nifty Tips - Nifty Future Tips and Nifty Option Tips