3 Oct - Nifty View

On Monday, Nifty opened flat, and rose slightly on low volumes, to close in its resistance zone of 5715/5735. While there is no change in the levels given in earlier Nifty Views, there does seem to be some exhaustion setting in, as Nifty has been unable to cross and close above this resistance zone of 5715/5735. Either it should cross it quickly, else it can start to fall under its own "overbought" weight. Hence, Positional traders will be better off in taking some profits off the table, and wait to see whether Nifty breaks out of this resistance zone, or else goes down to test its supports. On the upside, above 5735, next resistance zone to watch out will be at 5775/5795 Spot levels. On the downside, the lows of Monday should give some intraday support. Below that, 5660/5655 and 5630/5625 levels need to be watched, to see if any Buying support comes at those levels. If not, then a deeper correction can start. But all that is for later. Currently, as traders, we have to consider the trend as "Up" only, till Nifty is trading above 5630/5650 levels. However, instead of Buy on Dips, it ill be prudent to Wait and Watch, if Nifty is not able to cross and close above 5735 Spot level.

The Nifty Option OI Charts are given below:

 On the Options front, the Bears were active and they added 20 lacs+ OI from 5800 CE to 6000 CE strike. On an Up day, this move was a little surprising from the Bears. On the other hand, the Bulls did not do much, except for a small addition of 6 lacs+ OI at 5600 PE strike. Overall, 5700 remains as the 50:50 level for this series. 5600 and below are the supports, while 5800 and 6000 are the major resistances as of now.

For tomorrow, immediate resistance for Nifty Spot comes in the 5715/5735 zone. Staying above this, the Bulls will try to take it higher towards it next resistance levels of 5775/5795. On the downside, support for Nifty Spot comes around Monday's low of 5695/5690 levels. Below 5690, Nifty Spot can go on to test lower level supports at 5660/5655 and . A break of 5655 and 5630 will indicate a short term trend change.

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

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