On Wednesday, Nifty broke out above our resistance point of 4925 Spot, and ended 70+ points higher, closing near the high point of the day. Few indications marked this coming breakout, and why it should be taken. On 4th June, Nifty had broken its recent low on intraday basis, but managed to save it on a closing basis. Today, it has broken out above 4925 with increasing volumes. This does look like a real breakout, which can take Nifty to at least 5200+ levels. However, before that, it has to form a higher High first by closing above the recent high of 5023. if it manages to do that, then the medium term will be considered Bullish until and unless it breaks its recent low again. The Short term trend should be considered Bullish as long as Nifty is trading above 4850 now.
The Nifty Option OI Charts are given below:
The Bulls took the center stage in the Options front today, as one would expect on such a big trend day. A huge quantity of 37 lacs+ OI was added by the Bulls between the strikes of 4800 PE to 5000 PE. On the other hand, the Bears only added a small quantity of 11 lacs+ OI at 5200 CE and 5300 CE strike, while also covering some of their positions from 4700 CE to 4900 CE strikes. Overall, the Option charts have turned quite Bullish. 4800 has again become the major support for this series, whereas there is no real resistance as of now.
For tomorrow, immediate resistance for Nifty Spot comes at 5000 to 5025 zone. If it manages to cross that, then Nifty would have formed a higher high and it will zoom towards 5080+ levels. on the downside, support for Nifty Spot comes around 50/4960 level. Below this, it can further slide towards its breakout level around 4925. Although the probability is low, but if it does slide to that level, it would be an excellent buying opportunity with good Risk:Reward ratio.
The Bulls took the center stage in the Options front today, as one would expect on such a big trend day. A huge quantity of 37 lacs+ OI was added by the Bulls between the strikes of 4800 PE to 5000 PE. On the other hand, the Bears only added a small quantity of 11 lacs+ OI at 5200 CE and 5300 CE strike, while also covering some of their positions from 4700 CE to 4900 CE strikes. Overall, the Option charts have turned quite Bullish. 4800 has again become the major support for this series, whereas there is no real resistance as of now.7 June - Nifty Spot resistance at 5000-5025-5075-5090. Support at 4955-4925-4905-4875 - www.niftypower.com
Premarket Call -
Buy Nifty Future on Dips near 4950/4960 SL 4925 Tgt 4980-5020
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