On Monday, nifty opened above the falling trendline, but could not sustain above it and then had a 100+ point fall, turning the short term trend down. As given yesterday, a move below the falling trendline has triggered Positional Shorts. For these shorts, traders can now keep a stoploss at cost, as it is already in decent profit. On the downside, the 200 DMA should now be the level to watch out for. A break of that can bring some serious fall, as it would indicate a medium term trend change. 5070/5080 should be the last supports to be watched out in this fall. On the upside, all the previous supports will now act as resistances, and traders can Sell on all Rise at these levels, till nifty gives a closing above the trendline again.
The Nifty option OI Charts are given below:
On the Options front, It was a day that belonged to the Bears. They added a huge 43 lacs+ OI from 5200 CE to 5400 CE strike. On the other hand, the Bulls did little addition, but instead covered a huge amount of 25 lacs+ OI from 5200 PE to 5400 PE strikes. Just near to the expiry, the OI charts are changing colors. 5300 has become a minor resistance, while 5200 has become a minor support. There is no level in between. This should get resolved tomorrow.
For tomorrow, immediate resistance for Nifty Spot now comes at 5220-5230 zone. Only on staying above this, can the Bulls hope for some respite for higher level of 5250 and 5285/5290. A move above 5290 will once again trigger positional longs now, however, it looks difficult after today's breakdown. On the downside, support for Nifty Spot now comes at 5175-5180 level. Below this, the next supports come at 5150-5125 and 5070 level. Below 5070, bigger falls will come in Nifty.
24 Apr - Nifty Spot resistance at 5225-5250-5290-5325. Support at 5175-5150-5125-5070 - www.niftypower.com
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