23 May - Nifty View

On Tuesday, Nifty just at its resistance zzone of 4950/4960, and slid below it in the first five minutes itself, to start a downward journey of more than 100 points. It was a great opportunity for the Bulls to try and force some short covering. However, they failed and a failed breakout brings a fast action in the opposite direction. That is what we witnessed today. Nifty has now formed a well defined resistance zone of 4930-4950. Below this, it will remain a Sell on Rise market.

The Nifty Option OI Charts are given below:


The Bears got active today. They added a good amount of 21 lacs+ OI at the three strikes of 4800 CE, 4900 CE and 5000 CE. On the other hand, the Bulls did were mainly active at 4700 PE strike adding 7 lacs+ OI at that strike. Overall, 4700 is the major support, while 5000 is the major resistance for this series. 4800 to 5000 is the narrow range, while 4900 is the battlezone level between the Bulls and the Bears as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 4890/4895 level. If manages to cross this, then it can again target 4920/4950, where the Bears will apply the selling pressure again. Seeing the fall of today, an immediate test of these levels looks unlikely. On the downside, immediate support for Nifty Spot comes around 4850 levels. If slides below this, the downward pressure will continue, and Nifty can test 4790 levels easily.

23 May - Nifty Spot resistance at 4895-4925-4955-4980. Support at 4850-4820-4790-4760 - www.niftypower.com


Visit here for Nifty Tips - Nifty Future Tips and Nifty Option Tips