11 Sep - Nifty View

On Monday, Nifty Spot opened near 5360, declined during the day, and finally closed near the opening level. Nifty future has already completed the target of the Bullish Wolfe Wave that was formed in Hourly charts on 6th September. The short term trend should be considered up as long as Nifty Spot trades above 5345/5320 Spot, and Positional traders can look to Buy the Dips. Below 5345, two ranges comes into play. One is the broad range from 5220 to 5345. Second is within this range, the narrow range of 5250 to 5320. Technically, Nifty has consolidated after an upmove, came down to fill an open Gap, and have broken out after filling the gap. Hence, the breakout should be considered real till the time Nifty Spot trades above its support zones. On the upside, resistances for Nifty Spot exists near 5380/5385 levels, above which, it should head for 5415-5440 levels.

The Nifty Option OI Charts are given below:

On the Options front, the Bulls strengthened their positions by adding a big amount of 11 lacs+ OI at 5300 PE strike. There was very little activity at other strikes by either the Bulls and the Bears. Overall, the Options charts have turned interesting. The Bulls have converted 5300 level from a 50:50 level to a minor support. While the Bears have maintained resistances at 5400 and above levels. There is no 50:50 level as of now. Any move outside 5300 to 5400, can make the losing camp to panic and bring a trending move for Nifty.

For tomorrow, immediate resistance for Nifty Spot comes around 5380/5385 levels. Above this, the positive momentum will continue and the Bulls will head for higher level resistance of 5415/5440. On the downside, support for Nifty Spot comes at 5345/5320 levels. Any intraday decline towards 5345 can be used as a buying opportunity. Below 5345, Nifty Spot can go down to test lower level supports of 5320/5310, where the Gap support also exists. If declines and closes below 5310, then this upmove can be considered a false breakout, until Nifty conquers 5345 again.

11 Sep - Nifty Spot resistance at 5380-5415-5440-5460. Support at 5345-5320-5310-5280 - www.niftypower.com

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