13 Aug - Nifty View

Nifty opened the week up last week, giving a breakout on Tuesday, and then mainly consolidated in a narrow range. The medium term is going to be positive till the Recent Low of 5000 is protected by the Bulls. However, one thing that stands out from last week is the Low Volumes, that followed after the breakout move on Tuesday. Nifty has another strong resistance zone at 5370 to 5395 coming up, and unless and until there is Fresh Buying, the upmove will be in danger. On the downside, the immediate support is going to be the 5280/5260 and then 5220 level, which is the Gap support for this breakout. The short term trend is going to remain positive above this zone. Hence, positional traders can wait for a breakout from the zone of 5260-5390, before taking a Full position. Also remember that next week and after that will be holiday truncated week. Hence, the trend of Low volumes is expected to continue till then end of month.

The Nifty Option OI Charts are given below:


On the Options front, there was little activity on Friday, except for a small addition of 6 lacs+ at 5200 PE by the Bulls. Overall, the Charts also show the tussle between the levels of 5300 and 5400 between the Bulls and the Bears. 5000 stands as the biggest support for Nifty. The Bulls are building support from 5100 to 5300 strikes, where as the Bears are building resistances at 5400 and 5500 strikes. The Option Charts suggests that the Option writers also expect a rangebound move in Nifty in the coming days.

For Monday, immediate resistance for Nifty Spot comes around 5350 level. Above this, it will again try to test recent high near 5375 and then 5400 level. As given earlier, a move above 5390/5400 can attract Fresh Buying, which can lead to another small rally in Nifty. On the downside, immediate support for Nifty Spot comes at 5305/5295 levels. Staying below this, the Bears will try to take it down towards 5280 and 5260 levels. Below 5260, the short term trend will turn negative.

13 Aug - Nifty Spot resistance at 5350-5390-5405-5445. Support at 5300-5280-5260-5220 - www.niftypower.com

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