11 July - Nifty View

Nifty has largely consolidated in a tight range in the month of July. What is positive for the Bulls is that it has held on to the supports formed on the way up, which has helped in safely trailing the long trade positionally. Positional traders can now update their stoploss to 5250. The medium term trend should be considered up till Nifty does not give a monthly closing below 5200 level.


The Nifty Option OI Charts are given below:

On the Options front, it was a day for the Bulls, as they added a huge quantity of 42 lacs+ OI between 5000 PE to 5500 PE strikes. On the other hand, the Bears decided to stay back, and added a small quantity of OI at 5500 CE and 5600 CE strikes. Overall, the Option Charts indicate major support at 5200 and 5000 level for Nifty, and resistance at 5400 level. 5300 is 50:50 level between the Bulls and the Bears.

For tomorrow, consider the intraday trend as up as long as Nifty Spot trades and sustains above 5320-5330 zone. Below this zone, it is better to avoid intraday trades and let the trend become clear. Above 5330, Nifty Spot will head for 5400+ level, with minor resistances coming at 5360 and 5385 levels. On the downside, support for Nifty Spot comes at 5320 and 5290 level. Aggressive short trades can be tried below 5290/5285, for downside targets of 5260 and 5220.

11 July - Nifty Spot resistance at 5360-6385-5405-5445. Support at 5320-5290-5260-5220 - www.niftypower.com

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