Nifty opened Gap down today, made a new low on intraday basis, but managed to close above its previous low of 4788. It also closed above 4800, which has provided support on previous occasions as well. However, the trend still remains down and every rise should be used to build Short positions, till 4925 Nifty Spot level. If and when it closes above 4925, become a Bull again and start buying. Till then, it is a Sell on Rise market.
The Nifty Option OI Charts are given below:
On a day when Nifty held on to its lows and rallied smartly, it is surprising to find that the Bulls actually covered their positions at 4900 PE by about 4 lacs+. The only worthwhile addition by the Bulls was at 4700 PE, where they added 7 lacs+ OI. The Bears did nothing much today. Overall, 4900 still remains the 50:50 level as of now. 4800 and 4500 are the two big supports for this series, while 5000 is the biggest resistance.
For tomorrow, immediate resistance for Nifty Spot comes around 4870/4875 level. Staying above this, the Bulls can force covering upto 4905/4925 and 4960 level. A close above 4960 does not look probable as of now, but if it happens, it can cause major short covering rally. On the downside, support for Nifty Spot comes around 4820 level. Below this, it will again slide towards 4790-4770 level. A break of 4790 this time can be a decisive one.
5 June - Nifty Spot resistance at 4875-4905-4925-4960. Support at 4820-4795-4770-4750 - www.niftypower.com
Premarket Call -
Sell Nifty Future near 4860-4870 SL 4890 Tgt 4825-4790
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