2 July - Nifty View

On Friday, Nifty finally broke out above its resistance zone of 5180-5190, after almost a month of consolidation. Positional traders, who patiently held on to longs with stoploss of 5080 will be a happy lot now. The stoploss can now be raised to around 5150 Nifty Spot level. The uptrend is now confirmed and it remains to be seen how far it can go. No Shorts till Nifty maintains above 5150 on closing basis. Stay with the trend, and the market will reward sooner or later.

The Nifty Option OI Charts are given below:



It was the first day of the new series, and lot of activity was seen on the Options front. The Bulls added a huge quantity of 33 lacs+ OI at 5200 PE and 5300 PE strikes. The Bears were also active, but at higher strikes. They added an equally huge 27 lacs+ OI at 5400 CE and 5500 CE strikes. Overall, at the start of the series, 5000 seems to be the base as of now. A major resistance area has not been formed as yet. 5200/5300 can be treated as the 50:50 level as of now.

For tomorrow, immediate major resistance zone for Nifty Spot comes at 5340-5350 zone, with minor resistance at 5290 and 5315 level. The trend will be positive and Buy on Dips strategy should be adopted as long as Nifty Spot is above 5265 level now. On the downside, support for Nifty Spot comes at 5265 level. Below this, it can slide to test support levels at 5245 and 5220, which can be a good opportunity to re-enter/add to positional longs.

2 July - Nifty Spot resistance at 5290-5315-5350-5385. Support at 5265-5245-5220-5190 - www.niftypower.com

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