17 Sep - Nifty View

On Friday, Nifty had a huge gap up, and continued its uptrend to make an intraday high near 5586 Spot level, before finally closing around 5567 level. As given in previous Nifty Views, it is best to ride this uptrend with a trailing stoploss, and not be in a hurry to book profits, as this can lead to significant move in Nifty. The current trailing stoploss can be kept near 5430/5415 Spot level now. Before that, Friday's Gap zone of 5525/5515 Spot will provide further support to Nifty. On the upside, Nifty is now very close to its Yearly High of 5630 that it made in February of this year. There will be more cheers if Nifty crosses this level. Positional traders should continue to hold longs and add on dips till at least 5525/5515 level, with a stoploss below 5415 Spot level.

The Nifty Option OI Charts are given below:



On the Options front, the Bulls strengthened their positions by adding 7 lacs+ OI at 5300 PE and 5400 PE strikes. The Bears continued to cover their positions from 5200 CE to 5400 CE strikes. Overall, 5500 has now become the 50:50 level. The Bulls look in control of the Option Charts as of now. 5400 and below are the supports, while 5600 is a minor resistance as of now.

For tomorrow, immediate resistance for Nifty Spot now comes at 5585/5590. Above this, the Bulls will target the yearly highs at 5625/5630 levels. Above 5630, next target for Nifty Spot will be 5715 level, with minor resistances coming at 5650 and 5685 level. On the downside, support for Nifty Spot now comes around 5550 level. Below this, it can slide towards the Gap support level of 5525/5515 level. As given earlier, any downmove till 5525/5515 should be used as buying opportunities.

17 Sep - Nifty Spot resistance at 5590-5625-5650-5685. Support at 5550-5520-5490-5450 - www.niftypower.com

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