On Monday, Nifty closed right at the crucial level of 5250. Tomorrow, a move past this zone of 5250-5260 will indicate a breakout for a short term trend change. After a rangebound month of April, will this breakout be real, or will it again move back into the range? That is something which is irrelevant to think about. As traders, we have to trade each and every breakout, because whether it is real or not, that is something nobody knows. Positional traders can keep a stop and reverse at 5220 if the breakout happens on the upside.
The Nifty option OI Charts are given below:
On the Options front, the Bulls are adding open interest at 5200 PE strike, which has now become a minor support area, with major support coming at 5100 and 5000 levels, where maximum open interest in Puts is seen. The Bears added open interest at 5400 CE and 5500 CE strike. The maximum open interest in Calls is at 5400 and 5600 levels. The immediate narrow range is 5200 to 5300, which should be resolved soon, if a breakout has to happen.
For tomorrow, immediate resistance for Nifty Spot comes at 5260 level. Trading above this, Bulls will be in control, and Nifty can rally upto 5290 and 5320/5330 level, where again some selling pressure is expected to come. On the downside, support for Nifty Spot now comes at 5220 level. Below this, a retest of the retest lows at 5155 is possible, with minor supports coming at 5200 and 5180 level.
2 May - Nifty Spot resistance at 5260-5290-5320-5360. Support at 5220-5200-5180-5155 - www.niftypower.com
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