16 April - Nifty View

Nifty had a big down day on Friday. It got resisted again right at the declining trendline, joining the recent highs. The Lower Highs and Lower Lows pattern pointed out earlier still remains intact. Hence, it continues to remain a Sell on Rises market. The invalidation level for this downmove is a closing above 5280-5290 zone as of now. On the downside, support comes at the 200 DMA and then around 5070-5080 zone. Below 5070, the medium term trend will turn negative. More on that, if and when the level comes.

The Nifty option OI Charts are given below:

On the Options front, there was very little OI addition done by the Bears in the near strikes. This is surprising considering the big down day on Friday. On the other hand, the Bulls added a huge 12 lacs+ OI at 5100 PE strike. overall, the Options Charts indicate good support for Nifty at 5200 and lower strikes. 5300 is the battleground level, while 5400 and above are the resistances.

For tomorrow, immediate resistance for Nifty Spot comes at 5220-5230 zone. Above this, the Bulls will try to take Nifty higher towards 5260/5265 levels, where again selling pressure is expected to come. If trades above 5265, then a retest of 5320-5330 will be on the cards, which will decide the short term trend. On the downside, support for Nifty Spot comes at 5185 level, below which, it will slide towards 5165-5130 and 5070 level. A close below 5070 will turn the medium term trend to down.

16 Apr - Nifty Spot resistance at 5225-5265-5290-5325. Support at 5185-5165-5130-5070 - www.niftypower.com

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