On Thursday, Nifty finally broke out from 5715-5735 range, after several days of consolidation. It closed at resistance zone on Wednesday, opened well above it on Thursday, and straightaway went for the resistances. On the downside now, this zone of 5735/5715 and 5695/5690 will be an important reference zone, to look for supports in case of a correction. Positional traders can move their Stoploss below these levels now. Though Nifty continues its upside march, this one way rise now needs some consolidation/ correction. The present resistances around 5800 is the level to watch out, as above that, next logical target for Nifty can be near 6000 levels. This is also indicated from the Option Charts. Hence, as given in previous Nifty Views, at these levels, though the trend is up, it is better to just hold Long positions with a trailing Stoploss, than using the Buy on Dips strategy.
On the Options front, 5800 Strike was the focus of attention today. The Bulls added 13 lacs+ OI at 5800 PE strike. On the other hand, the Bears covered 10 lacs+ OI at 5800 CE. Hence, in one day's movement, the level of 5800 has gone from being a major resistance to a minor resistance. Above this, the next major resistance as per the Option Charts is at 6000 level. On the downside, 5700 is a minor support now, while5600 and below are the supports.
For tomorrow, immediate resistance for Nifty Spot comes at 5775/5795 zone. Staying above this zone, the Bulls will continue their upward march, for higher levels of 5825 and 5880/5885 levels.On the downside, support for Nifty Spot comes at 5760/5750 levels. Below this, lies the breakout zone of 5735/5715 and 5690 level. Intraday, the Bears will dominate below 5775 level. However, Buying support is expected to come at all supports, and it will be prudent to book quick profits in intraday short trades.
5 Oct - Nifty Spot resistance at 5795-5825-5860-5885. Support at 5775-5750-5735-5715 - www.niftypower.com
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