1 Oct - Nifty View

 

After ending the September series with a Red Candle, Nifty opened up on the first day of the series, made a New Yearly High, but could not sustain it and slid to close just around 5700 levels. The Bulls have managed to save 5630/5625 Spot levels on all declines till now, and Positional traders can raise the Stoploss for Longs positions to that level. Fresh Shorts can also be opened below those level, with a strict Stop and Reverse above 5660 Nifty Spot closing level. This will avoid any whipsaw trade, and ensure that traders stay with the trend. On the upside, 5715/5735 have been mentioned as stiff resistances in earlier Nifty Views also, and Nifty took resistance exactly at that level. Above this zone, 5775/5795 should come quickly.

The Nifty Option OI Charts are given below:

On the Options front, it was the Bulls show on the first day of the series. They added 36 lacs+ OI from 5400 PE to 5700 PE strikes. On the other hand, the Bulls did not do much on Friday. Overall, the Option Charts indicate 5700 as the 50:50 level between the Bulls and the Bears. 5300 is the biggest support, while 6000 is the biggest resistance as of now. However, since it is just the beginning of the series, the OI at various strikes is still lower than average, and hence, no conclusions should be drawn so early in the series.

For tomorrow, immediate resistance for Nifty Spot comes at 5715/5735 levels. Above this, the Bulls will be in control and they can take Nifty higher towards 5775/5795 levels. On the downside, support for Nifty Spot comes at 5690 and 5660/5655 levels. Below 5690, Nifty Spot can go on to test lower level supports. A break of 5655 and 5630 will indicate a short term trend change for the Bulls, and Positional Shorts can be opened with Strict Stop and Reverse above 5660 Spot.  

1 Oct - Nifty Spot resistance at 5715-5735-5775-5795. Support at 5690-5670-5655-5630 - www.niftypower.com

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