Nifty continues the lower lows and lower high formed. Positional traders holding short positions can now move their stoploss lower to around 5070 Spot level on closing basis. The first signs of a trend change will come only when Nifty Spot will be able to close above 5130/5150 level. Till then consider the trend as down only.
The Nifty Option OI Charts are given below:
On a day when Nifty closed down, it was interesting to see a huge 19 lacs+ OI addition at 4900 PE by the Bulls. This might be the last support for this upmove, and the Bulls seem to be trying their best to save it. On the other hand, the Bears added a steady amount of 14 lacs+ OI from 5000 CE to 5200 CE strike. Overall, 5100 is the 50:50 level for this series as of now. 5000 is a minor support, though Nifty has closed below this level today. 4900 to 5200 is the range as of now.
For tomorrow, immediate resistance for Nifty Spot comes around 5000-5010 level. Staying above this, the Bulls can hope or a recovery upto 5045-5075 level, where again it will meet selling pressure. A close above 5070 will give the first signs of relief from this downmove now. On the downside, support for Nifty Spot comes around 4950 level. Below this, 4860 will be the positional target for Nifty, with minor supports coming in between at 4920 and 4900 level.
10 May - Nifty Spot resistance at 5005-5045-5075-5115. Support at 4950-4920-4900-4860 - www.niftypower.com
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