4 May - Nifty View

 On Thursday, Nifty closed below its important support of 5220, stopping out the Long Trade and initiating a Short Trade. The breakout looks failed at this moment, and a move and close below 5150 spot will confirm it. It has formed a lower high, and a close below 5150 will form a lower low, which will form a new downtrending pattern. Hence, a close below 5150 can now bring the much needed momentum on the downside. Till then, its better to book small profits till the time Nifty is trading between the range of 5150 and 5350 Spot.

The Nifty Options OI Charts are given below: 

 

 

The Bulls added 14 lacs+ OI at 5000 PE and 5100 PE strikes today, but covered nearly 4 lacs at 5200 PE strike. At this time, big build up is seen at these two strikes, unlike last month, where support was built up at 5200 level. On the other hand, the Bears added an almost equal quantity of 13 lacs+ OI at 5200 CE and 5300 CE strikes. After todays additions, 5200 and 5300 remain the minor support and resistances levels for Nifty, while the broader range remains at 5100 to 5400.

For tomorrow, immediate resistance for Nifty Spot comes at 5215/5220 level. If it manages to stay above this, then the Bulls can push it higher towards 5260 and 5280 levels. On the downside, support for Nifty Spot comes at 5180 level.Below this, the intraday will be negative, and Nifty can slide lower towards 5150/5120 and 5070 levels.

4 May - Nifty Spot resistance at 5220-5260-6285-5320. Support at 5180-5150-5120-5070 - www.niftypower.com

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