27 June - Nifty View

Nifty once again managed to save its support area of 5085-5090, and closed above it. This level is now the Stop and Reverse level for Positional Longs now. The downtrend will only be confirmed after Nifty breaks 5085 and then 5020 after that on closing basis. On the upside, the level of 5175/5185 is proving to be a tough resistance. Above that, 5220 would be another level, above which, fresh longs can be initiated by those who missed this rally.

The Nifty Option OI Charts are given below:


As Nifty is near expiry, not much activity in the Options open interest is expected. The Bulls were active at the strike of 5100 PE today, where they added 7 lacs+ OI. If and when Nifty breaks 5085 before the expiry, these Bulls will have to run for cover. On the other hand, the Bears covered/ book profits at 5300 CE strike, which is on expected lines. Overall, 5100 is still the 50:50 level between the Bulls and the Bears. The range is 5000 to 5200 as per the Option Charts.

For tomorrow, immediate resistance for Nifty Spot comes at 5125/5130 level, above which, it will again head for its strong resistance levels of 5160 and 5180. On the downside, support for Nifty Spot comes at 5110 and then at 5090/5085 level. Below 5085, the Short term trend changes to negative, and Nifty can slide till 5020/4990 level quickly.

27 Jun - Nifty Spot resistance at 5130-5160-5180-5205. Support at 5110-5085-5055-5020 - www.niftypower.com

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