3 Sep - Nifty View

On Friday, Nifty closed right at its Gap support near 5260 Spot level. This was the level where Nifty opened on 6th August, after closing at 5220 on the previous day. Now after it has entered the gap zone, it should ideally close this gap, before any upward movement resumes. The short term trend remains down, and rise should be considered as a selling opportunity as of now. On the upside, 5230 and 5345 Spot will be tough resistances for Nifty, and should be Stoploss and Reverse levels for Positional Shorts, as of now.

The Nifty Option OI Charts are given below:

It was the first day of the series, and as expected, a lot of open interest was added both from the Bulls and the Bears. The Bulls added 30 lacs+ OI from 4900 PE to 5100 PE strikes, whereas the Bears added 36 lacs+ OI from 5400 CE to 5600 CE strike. From the first day of the series, 5400 and 5000 seems t be two levels of interest to the option wirters. Also, the overall options charts have developed a nice narrow range of 5300 to 5400, with 5300 as the 50:50 level. As of now, 5400 and above looks like strong resistance levels for Nifty, and probability of a downmove looks more prominent than an upside breakout.

For tomorrow, immediate resistance for Nifty Spot comes at 5275/5280. Staying above this, Nifty Spot will target higher level resistances of 5300 and 5320, where agai it is expected to meet some selling pressure. On the downside, support for Nifty Spot comes at 5250/5255 level. Below this, chances are high that Nifty can slide to close the gap till 5220 level at least.

3 Sep - Nifty Spot resistance at 5275-5300-5320-5345. Support at 5250-5220-5190-5150 - www.niftypower.com

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