20 Sep - Nifty View

Nifty has not done much in the first two days of this week. On Tuesday, it formed a Doji on Daily charts. The trend remains up and the same levels are still valid as was given in previous Nifty Views. Any decline, if it comes because of the political uncertainty, can be used by the traders to go long. Gap zone of 5525/5515 Spot is the immediate support zone for Nifty. The upmove has already formed a new yearly high. If at all this rally turns out to be a false move, then there will be plenty of opportunities to go short. As traders, we should not be predicting Tops and Bottoms, rather, we should be following the trend, which is up as of now.

The Nifty Option OI Charts are given below:

On the Options front, the Bulls strengthened their positions at 5500 level, by adding a big amount of 9 lacs+ OI at 5500 PE strike. On the other hand, the Bears added a big amount of 16 lacs+ OI at 5700 CE and 5800 CE strikes, building some resistance there, although a weak one at the moment. Overall, the Option Charts indicate 5600 as the 50:50 level between the Bulls and the Bears. 5500 and below are the strong supports, while 5700 and 5800 are minor resistance levels.

For tomorrow, immediate resistance for Nifty Spot comes at 5610 and 5630 levels. Only on sustaining above 5630, will Nifty head for 5715 levels, with minor resistance coming at 5650 and 5685 levels. On the downside, support for Nifty Spot comes at 5590 levels. Below this, it can slide towards 5550 and 5525/5515 levels, where again it is expected to find some support.

20 Sep - Nifty Spot resistance at 5610-5630-5650-5685. Support at 5590-5570-5550-5525 - www.niftypower.com

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