6 Sep - Nifty View

On Wednesday, Nifty opened down on negative global cues, and finally closed the Gap that was formed on 8th August. With this, it completed the first target of Positional Shorts, which was given in earlier Nifty Views. Also, it has closed below an important support of 50 DMA. Now, those in Positional Shorts can keep this level of 50DMA, around 5250/5260 Spot as their stoploss on Closing Basis. On the downside, 5220/5190 is the immediate support zone, and if the Bears manage to break it, then a move towards 5150 Spot should come easily.

The Nifty Option OI Charts are given below:


On the Options front, the Bears were active today. They added 12 lacs+ OI at 5300 CE strike, and 10 lacs+ OI at 5500 CE strike. There was not much more addition at the other strikes by either the Bulls or the Bears. Overall, the Options charts present the same picture as given before. 5300 is the 50:50 level, 5400 and above are the resistances, while 5200 and 5000 are the major supports.

For tomorrow, immediate rsistance for Nifty Spot comes at 5255/5260 levels. Staying above this, the Bulls can hope for some short covering till 5280/5300 levels. Above 5300, a retest of strong resistance zone at 5345/5350 can materialize. On the downside, support for Nifty Spot comes around 5220 level. Below this, the Bears will continue to have an upper hand, and they can take Nifty down towards 5190 and 5150 levels.

6 Sep - Nifty Spot resistance at 5255-5280-5300-5320. Support at 5220-5190-5150-5130 - www.niftypower.com

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