27 July - Nifty View

On Thursday, Nifty finished its July series closing down at around 5050 level. It was a rangebound series, where we have seen a little bit of volatility only in the later part of the series. It was not a series for day traders, but positional traders, who are short from 5250 level, are good in profits right now. Nifty has closed below is 200 DMA on Thursday, and now that will be its first major resistance in case of any upmove. Above that, 5170/5200 is going to be the next major resistance.

The Nifty Option OI Charts are given below:



At the start of the series, the Options writers were active, adding a good amount of open interest across various strikes. The Bulls were most active at 5100 CE and 5200 CE strikes, where they added 24 lacs+ OI.The Bears added 21 lacs+ OI at 4900 PE and 5000 PE strikes. Interesting to note is the huge amount of open interest of 70 lacs+ at 5000 PE strikes. The Bulls seem to be counting on Nifty holding this level. This also means that any bigger fall is ruled out till Nifty is trading above this level. Hence, those in Positional shorts should book profits before this level and reshort if this level breaks. A close below 5000 can cause some panic among the writers of 5000 PE. Till then, don't consider this fall as a bigger downtrend.

For tomorrow, immediate resistance for Nifty Spot comes at 5070/5080 zone. Above this, Nifty Spot can again attempt a close above 5100 level, facing resistance at 5120/5130 levels. On the downside, support for Nifty Spot comes at 5020 levels. Below this, it can slide towards 4990-4960/4950 and 4905 levels, with some panic selling.

27 July - Nifty Spot resistance 5075-5105-5125-5150. Support at 5020-4990-4960-4905 - www.niftypower.com

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