4 Sep - Nifty View

On Monday, Nifty opened up on positive global cues, but declined during the day to close near Friday's closing level. Once again, it closed below the Gap open of 8th August. Technically, it should decline now to close the Gap that it formed on 8th August. However, the downward momentum has been missing till now. The trend will considered down till it trades below 5345 Spot level, and any rise till that should be used to build short positions. 5345 Spot should also be the stoploss for any New shorts being built at this stage. On the downside, below 5260, a decline towards 5220 and 5150 can materialize.

The Nifty Option OI Charts are given below:

On the Options front, there was a lot of trading activity today also. The Bulls added 27 lacs+ OI from 4900 PE to 5200 PE strike. The Bears also added 29 lacs+ OI from 5300 CE to 5600 CE strike. Overall, from the Option charts, 5200 is again emerging as the strong support for Nifty. Below this, 5000 is the next strong support. On the upside, 5400 and above are emerging as the strong resistances. 5300 is the 50:50 level between the Bulls and the Bears as of now. The options charts also given a sense of Bearishness as of now. We have to see whether this picture changes going forward.

For tomorrow, immediate resistance for Nifty Spot comes at 5255/5260 level. Staying above this, it will head for its resistance levels at 5280 and 5295 levels, where again selling pressure is expected to come. Above 5290, 5330 and 5345 are also strong resistance levels, and short term trend deciding levels for Nifty. If Nifty goes above 5345, the outlook will turn positive and Positional longs can be opened. On the downside, support for Nifty Spot comes at 5220 level. It is the Gap support and if Nifty declines below this, it can head for 550, with minor support at 5190 and 5170 levels.

4 Sep - Nifty Spot resistance at 5260-5280-5295-5330. Support at 5220-5190-5170-5150 - www.niftypower.com

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