On Thursday, Nifty opened up and after consolidating in the first half, moved up and closed higher just above its resistance zone of 5320-5330. The breakout above the falling trendline is till valid, and positional longs should continue to hold. Stoploss for this longs can now be brought up to around 5250-5240 level, below which, fresh shorts are to be opened. 5285 Spot will be the first level, below which the Bulls will start to lose strength, which will be confirmed on a break of 5250-5240.
The Nifty option OI Charts are given below:
On the Options front, the Bulls added 7 lacs+ OI at 5300 PE strike, in a low volume day. on the other hand, the Bears covered nearly 5 lacs OI at 5400 CE strike. After today's move, 5300 remains the 50:50 level between the Bulls and the Bears. 5200 is the strongest support for this series, while 5400 is the major resistance.
For tomorrow, immediate resistance for Nifty Spot now comes around 5350 level, above which, 5380 will be the acid test for the Bulls. On the downside, support for Nifty Spot comes around 5320/5330 zone. Below this, Nifty can slide towards 5285 level, where again buying pressure from the Bulls will come. A move outside this 100 point range of 5285 to 5385 will give the next big breakout trade for Nifty.
20 Apr - Nifty Spot resistance at 5350-5380-5405-5450. Support at 5320-5285-5245-5220 - www.niftypower.com
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