29 May - Nifty View

Nifty closed up by 60+ points on Monday, crossing at closing above its previous high near 4960 level. In the process, it has formed a higher low and now, a higher high on short term charts. At NiftyPower, we closed our Positional longs which were taken around 4880 level. Although the trend remains up, the volatility might increase as Nifty nears the resistance area at 5030 and 5085 Spot, in the expiry week. Hence, better to take profits off the table, and wait for a suitable re-entry zone or the next signal.

The Nifty Option OI Charts are given below:



On the Options front, there was a huge covering of 27 lacs+ OI from 4800 CE to 5000 CE strikes by the Bears. Also, there was an equally huge addition of 17 lacs+ OI at 4900 PE and 5000 PE by the Bulls. The Options data points to a bullish picture today. Going into the expiry week, 4900 has become a minor support level while 5000 is a minor resistance level. 4800 to 5100 is the broad range for this expiry.

For tomorrow, immediate resistance for Nifty Spot now comes at 5020-5030 zone. Above this, short covering can straightaway take Nifty towards 5080/5090 levels. On the downside, support for Nifty Spot comes around 4955/4960 level. Any decline towards these levels can be utilized to create intraday long positions. If it slide below 4955, then a retest of the breakout level of 4935/4940 can be done. Failure to hold 4935 will lead to bigger slides in Nifty.

29 May - Nifty Spot resistance at 5025-5070-5095-5120. Support at 4960-4935-4920-4870 - www.niftypower.com

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