12 Apr - Nifty View

Nifty opened Gap Down on Wednesday, but managed to recover and closed above the Open Price. Another point to note in today's trade is the rise in volumes. After the breakout of 30th March, trading volumes have shown a declining trend. Todays rise in volumes indicate that a breakout/ breakdown and a trending move might just be around the corner. Presently, the short term trend remains down, and positional traders who sold nifty when it broke 5290 Spot can keep stoploss at cost on closing basis. The real upside move will come only when Nifty is able to close above the declining trendline. Till then, it remains a Sell on Rises market.

The Nifty option OI Charts are given below:

Both, the Bulls and the Bears were active today. The Bulls added 9 lacs+ OI at 5200 PE and 5300 PE strikes. The Bears added a similar 9 lac+ OI at 5400 CE and 5500 CE strike. Overall, the Option Charts indicate a narrow range between 5200 to 5400 for the series. A trending move can come beyond this levels only.

For tomorrow, immediate resistance for Nifty Spot comes at 5265/5270 levels. Above this, the next importance resistance levels are at 5290/5295 zone. Above these, the short term trend will turn up, and short covering rally can take Nifty to higher levels of 5325 and 5385 levels. On the downside, support for Nifty Spot comes at 5225/5230 levels. Below this, the Bears will have an upper hand hand, and they will try to push Nifty towards lower levels of 5185-5165 and 5130 levels.

12 Apr - Nifty Spot resistance at 5270-5295-5325-5360. Support at 5225-5185-5165-5130 - www.niftypower.com

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