27 Aug - Nifty View

Nifty enters into the Expiry week, crucially poised in the Short term. Last week, it held on to its support levels at 5365/5370 Spot, despite some negative global cues. It has closed near the 5390 Spot level, which is very close to the short term trend deciding levels of 5345/5370. Nifty movement in the Expiry week, and how well it defends these levels will give clues for the strength of this rally. As of now, Positional traders have to be Long with a Stop and Reverse around 5340/5345 Nifty Spot.

The Nifty Option OI Charts are given below:

On the Options front, the Bulls covered a huge amount of 25 lacs+ OI at 5400 PE and 5500 PE strikes. The Bears also covered a smaller amount of 7 lacs+ at 5400 CE strike. Going into the Expiry week, the Option Charts are well defined. 5300 and 5500 are the well defined and major resistances, with open interest in 5300 PE and 5500 CE crossing 1 Crore each. 5400 is the clear 50:50 level between the Bulls and the Bears, with almost equal open interest at 5400 CE and 5400 PE strikes.

For Monday, immediate resistance for Nifty Spot comes at 5400 and 5415 levels. Staying above this, the Bulls will re-attempt higher level resistances of 5445 and 5490. On the downside, support for Nifty Spot comes ta 5370 and 5345 levels. Below 5345, the short term trend will turn negative, and the Bears will drag Nifty down towards 5320 and 5295 levels.

27 Aug - Nifty Spot resistance at 5400-5415-5445-5490. Support at 5370-5345-5320-5295 - www.niftypower.com

Visit here for Nifty Tips - Nifty Future Tips and Nifty Option Tips