23 April - Nifty View

 On Friday, Nifty after opening down, recovered in mid day, but saw a flash crash in the afternoon session, which sent the futures crashing down. The crash lasted less than a minute, and Nifty managed to close just above the falling trendline. Till the time it is closing above it, consider the trend as up only. If however, it closes below the trendline tomorrow, it can be considered to be a failed breakout, and positional shorts can be initiated. The April series has been rangebound between 5200 to 5400 till now, not giving much gains to the positional traders. Whether the expiry week will bring a trending move, remains to be seen.

The Nifty option OI Charts are given below:

There was a huge covering in Options on Friday. The Bulls covered 26 lacs+ OI from 5200 PE to 5400 PE strikes. On the other hand, the Bears covered 12 lacs+ OI from 5300 CE to 5500 CE strike. Going into the expiry week, the range as per the options charts remains 5200 to 5400, same as it has been for the entire month. 5300 is the 50:50 level as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5320-5330 zone. If it manages to stay above this, the intraday trend can be considered to be positive, and the Bulls will try to target next higher resistance 5380 and 5405. On the downside, support for Nifty Spot comes around 5285 level. Below this, the Bears will be in control, and they will try to push Nifty towards lower levels supports of 5245-5220.

23 April - Nifty Spot resistance at 5325-5350-5380-5405. Support at 5285-5245-5220-5170 - www.niftypower.com

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