26 Sep - Nifty View

On Tuesday, Nifty formed a Doji on Daily charts. In a trending market, Doji can give early signs of reversal. However, that has to be confirmed by a move below the Doji low and break of recent support zone. Hence, the trend remains up as long as Nifty Spot continues to close above 5630. On the upside, the resistance remain at 5715/5735 zone, and then at 5775/5795 zone. Below 5630, Nifty can test its breakout level of 5575/5580 Spot. Positional traders can remain long with trailing stoploss around 5630/5620, and go short if Nifty Spot closes below 5575.

The Nifty Option OI Charts are given below:  

So near the Expiry, very little action is expected on the options front, except for some profit booking, and that is what happened on Tuesday. The Bulls covered 13 lacs+ OI at 5500 PE, while the Bears added 13 lacs+ OI at 5800 CE. Overall, the Option charts indicate 5700 as a minor resistance. 5600 and below are the supports, while 5800 is a resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5690/5695 levels. Above this, the Bulls will again target resistance zone of 5715/5735 and higher. On the downside, support for Nifty Spot comes at 5650/5660 levels. Below this, it will test strong support area of 5625/5630. Below 5630, the Bears will start having an upper hand, and there can be Long unwinding before Expiry.

26 Sep - Nifty Spot resistance at 5695-5715-5735-5775. Support at 5655-5630-5590-5575 - www.niftypower.com

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