21 Sep - Nifty View

On Thursday, Nifty opened down, tried to recover intraday, but closed near the opening level due to some last minute selling. The Political environment remains uncertain, which is causing some downward pressure on Nifty. Whether it is a Golden Opportunity to Go Long or a Top in the Making, only time will tell. Technically, the trend remains up and Positional traders should remain Long and maintain a Stoploss below 5515/5525 Nifty Spot level on closing basis.

The Nifty Option OI Charts are given below:

 

On the Options front, there was little addition in OI, except for 6 lacs+ OI at 5600 CE strike. The Bulls covered a little amount of OI at 5600 PE and 5700 PE strikes, while the Bears also covered OI at 5800 CE strike. Overall, 5600 remains a 50:50 level as of now, although the Bears have an edge over the Bulls, with slightly more OI in Calls than in Puts. 5500 and below remain as strong supports. The Bears are trying to equalize things at 5500 level. Tomorrow's Option charts will bring more clarity on this. 5500 and 5600 are the two most important levels for Nifty for this series. Accordingly, 5520 to 5630 Spot can be treated as corresponding minor range.

For tomorrow, immediate resistance for Nifty Spot comes at 5555/5570 zone. Above this, the Bulls will try to take control and lead Nifty to higher level resistances of 5590-5610 and 5630 levels. On the downside, support for Nifty Spot comes at 5530/5515 zone. Below this, Nifty will be entering the Gap zone which it created on 14th September, and it can go all the way to close this gap before any further upmove comes.

21 Sep - Nifty Spot resistance at 5555-5575-5590-5610. Support at 5530-5515-5490-5450 - www.niftypower.com

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