30 May - Nifty View

On Tuesday, Nifty closed slightly down, after having a gap up opening in the morning. The trend remains up, although the declining volumes are a worry. the 200 DMA is the next big resistance for Nifty, and a close above that might trigger a short covering rally and some panic among the Bears. Positional traders long on Nifty can book profits above 5000 on Nifty, and wait to see if it manages to close above the 200 DMA. there will be plenty of opportunities to re-initiate long trades after that. On the downside, no shorts advised till Nifty Spot is trading above the levels of 4920 as of now. Only below 4920, will the Bears have an upper hand. Till then, it remains a Buy on Dips market.

The Nifty Option OI Charts are given below:


In the Expiry week, little action is expected as far as addition of OI goes. However, the Bulls seem confident of a Bullish expiry. They added 18 lacs+ OI between 4800 PE to 5000 PE strikes. On the other hand, the Bears covered 16 lacs+ OI at between 4800 CE to 5000 CE strikes. Just 2 days to go for Expiry, and the Option Charts still dos not have a 50:50 level. 4900 is minor support, while 5000 is minor resistance. 4800 to 5100 is the broad trading range.

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. If it slide below 4955, then a retest of the breakout level of 4935/4940 can be done. Failure to hold 4935/4920 will lead to bigger slides in Nifty.

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

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