15 May - Nifty View

Attached above is the weekly chart of Nifty Future. Nifty is in a downtrend in Hourly and Daily timeframes (and all time frames between them). However, if we check the weekly charts, we find that it has still not retraced the breakout from the falling trendline, from which it broke out from in the last week of January 2012. That breakout had happened after more than one year of downtrend on weekly charts. Hence, till the time it convincingly closes below this falling trendline (in which case this breakout will be treated as a whipsaw), the Bulls still have a chance. Traders who are in shorts based on weekly charts can now keep a stop and reverse around 5050 level to lock in the profits. Infact, positive momentum can be seen in Nifty even if the Bulls manage to close Nifty above 4950/4960 level as of now. Aggressive traders can also keep a stoploss at that level to lock in the profits, and reshort if Nifty closes below 4950.

The Nifty Option OI Charts are given below:

On the Options front, there was no major action today, except for covering of nearly 6 lacs OI at 5000 PE by the Bulls. The Bears added 13 lacs+ OI from 4900 CE to 5200 CE strikes. Overall, the levels of 4900 and 4800 are the support levels for Nifty for this series. 5000 is the 50:50 level, while 5100 and above are the resistances.

For tomorrow, immediate resistance for Nifty Spot comes aaround 4920 level. Staying above this, the Bulls will again aim for 4950 and 4980 levels, where Nifty is expected to face some selling pressure again. If stays above 4950/4980, then 5040 can be the immediate upside target. On the downside, support for Nifty Spot now comes at 4880/4875 levels. Below this, it will slide towards lower levels of 4855, 4820 and 4760 levels.

15 May - Nifty Spot resistance at 4920-4955-4980-5020. Support at 4880-4855-4820-4760 - www.niftypower.com

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