24 Sep - Nifty View

On Friday, Nifty has a Huge Rally, on back of improving political situation in the country. In previous Nifty Views, it was given that Positional Traders should remain long and continue to build long positions as long as Nifty sustained above 5515/5525 Spot level. It has also been given that this upmove will be best traded with a trailing stoploss and traders should not be in a hurry to book profits. All traders who followed the Views would be in good profits right now. 5515/5525 level has now become a medium term support level, and positional traders can now raise their stoploss to 5630/5620 Nifty Spot level. On the upside, Nifty is at yearly highs, and yet to form new resistance levels.Some important levels to watch out from last year's charts are 5715/5735 and 5775/5795 Nifty Spot levels.

The Nifty Option OI Charts are given below:  

On the Options front, the Bulls added a huge amount of 74 lacs+ OI from 5500 PE to 5800 PE strike. On the other hand, the Bears covered an equally huge amount of 46 lacs+ OI from 5500 CE to 5700 CE strike. However, the Bears also added a huge quantity 36 lacs+ OI at 5800 CE and 5900 CE strikes. Just days before the expiry, such huge additions in Open Interest is unusual, but it has not been surprising given the definitive upmove that was seen.Overall, the Option Charts also seem to be adjusting to the Bullish move. The resistance comes in at 5800, while strong supports comes at 5500 and below. In between is the trading range, with 5600 a minor support, while 5700 is a minor resistance as of now.

For tomorrow, immediate resistance for Nifty Spot now comes at 5715/5735 zone. Staying above this, it will head higher towards 5775/5795 resistance zone.On the downside, support for Nifty Spot now comes around 5690/5685 and then around 5650 Nifty Spot level. Below this, Nifty Spot can slide towards its strong support level of 5630/5625 level, where again Buying Pressure is expected to come.

24 Sep - Nifty Spot resistance at 5715-5735-5775-5795. Support at 5685-5650-5630-5580 - www.niftypower.com

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