19 July - Nifty View

On Wednesday, Nifty took support near it Gap low area of 5160, and entered back into the region above 5200. The Bears could not manage a good close below 5190, which was given as the support level for Nifty. Now, since it has taken support and rising, we have to see how the Bulls behave in the 5250-5270 region. Failure to cross this zone will again put Nifty into rangebound mode, which has been generally the trend for the month of July. However, a move above this zone can lead to a rally, and probably a retest of 5320-5330 zone.

The Nifty Option OI Charts are given below:


There was no real activity on the Options front on Wednesday, except for covering of 5 lacs+ OI by the Bears. Overall, 5200 still is the battleground level between the Bulls and the Bears. 5300 and 5400 are towering resistances, and the Bulls will have to do make a real effort to cross these before this expiry. The amount of covering that we see at these strikes, if and when Nifty trades near 5300 level, will give further clues to its movement.

For tomorrow, immediate resistance for Nifty Spot comes around 5245 level. Staying above this, it will head for higher level resistances of 5270/5305 and 5325. On the downside, support for Nifty Spot comes at 5225/5220 level. Blow this, the Bears will try to push it down towards 5190 and 5160 level again. Traders can adopt a strategy of Long above 5270 and Short below 5240 for Thursday.

19 July - Nifty Spot resistance at 5245-5270-5305-5325. Support at 5220-5190-5160-5135 - www.niftypower.com

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