18 April - Nifty View

On Tuesday, Nifty closed above the falling trendline, breaking the lower lows and lower high pattern that it had been forming since 17th February. This can be the end of the two month long correction period. What is needed now is a follow-up move tomorrow, and preferably a close above the recent high of 5378 Nifty Spot. Positional Short trade, that have been reversed into longs today, and they can now keep an initial stop and reverse at 5220 Spot, which is the low formed after the RBI News today.

The Nifty option OI Charts are given below:

On an UP day like, action is expected from the Bulls, and that is exactly what they did, adding a huge quantity of 16 lacs+ OI at 5200 PE and 5300 PE strikes. The Bulls did not do much today, as expected. overall, 5300 has now become a clear 50:50 level between the Bulls and the Bears. 5200 is a major support, while 5400, which is also near the recent high, is the biggest resistance for this series.

For tomorrow, immediate resistance for Nifty Spot comes at 5320-5330 zone. Trading above this zone, the momentum will remain with the Bulls, who will try and close nifty above the recent high of 5378. On the downside, support for Nifty Spot now comes at 5285/5290 level, below which, the next supports comes at 5245 and 5220 levels. If breaks and trades below 5220, then this breakout today should be considered a false breakout, and positional shorts can be opened.

18 Apr - Nifty Spot resistance at 5325-5360-5380-5405. Support at 5285-5245-5220-5180 - www.niftypower.com

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