On Thursday, Nifty declined in early trades, took support right near to the support level of 5630 (5636 actual low) which was indicated in previous Nifty View, and then bounced nearly 80 points from there, to close near 5715 resistance level. In the previous Nifty View, the importance of 5630 was highlighted, and also, it was given that Positional traders should book partial profits around this level. Now, Nifty has taken support around at 5630, but it has still not broken the resistance of 5735/5750. Hence, positional traders can hold their shorts keeping a Stop and Reverse above 5735 Spot level on closing basis. 5630 to 5735/5750 Spot is the new trading range for Nifty. A breakout/ breakdown can be expected outside of this range now.
The Nifty Option OI Charts are given below:
On the Options front, there was more covering/profit booking seen by both the Bulls and the Bears. The Bulls covered 13 lacs+ OI at 5400 PE and 5500 PE strike, while the Bears covered 12 lacs+ OI at 5700 CE and 6000 CE strike. The Bears also added 12 lacs+ OI at 5800 CE and 5900 CE strike, while the Bulls added 10 lacs+ OI at 5600 PE and 5700 PE strike. Overall, 5700 remains as the 50:50 levels between the Bulls and the Bears. 5600 is the biggest support, while 5800 and 5900 are the biggest resistances as per the Option Charts. On such a recovery day, the Option Charts have not changed at all, and they don't look that much Bullish. Probably, Friday's action will throw more light on what the Option writers are thinking about Nifty.
For tomorrow, immediate resistance for Nifty Spot now comes at 5715/5735 zone, above which, the Bulls will take it towards 5750/5755 level. Is sustains above 5750, another short covering rally can come in Nifty. On the downside, support for Nifty Spot now comes around 5690/5695 level. If the Bears manage to take it below this level. then a retest of supports at 5660/5630 is likely. Till Nifty stays between the range of 5630 to 5735, it is a trading market and better to book quick profits in both Long and Short trades. Outside of this range, we will see a Breakout/ Breakdown.
12 Oct - Nifty Spot resistance at 5715-5735-5750-5785. Support at 5690-5660-5630-5605 - www.niftypower.com
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