19 Nov - Nifty View

On Friday, Nifty finally broke down below its support level of 5630, and declined further below next support zone of 5580/5585 and closed below it. In previous Nifty View, it was given that the expected movement is down, and Positional traders can keep a Stoploss at 5690/5695 Spot level. That Stoploss can be modified now and kept at 5650/5655 Spot level now. Also, Nifty is now approaching its strong Gap support area of 5525/5535. The Bulls are not expected to give in this support level easily. Hence, Positional traders can book some profit here, and hold on to the remaining shorts with the Stoploss given. If the Bears manage to take and close Nifty below 5520, then a Gap Filling move can be expected. More clarity on this will come after seeing Nifty's movement in the early part of next week.

The Nifty Option OI Charts are given below:  

On the Options front, once again the Bears dominated the scene on Friday. They added a huge quantity of 34 lacs+ OI from 5500 CE to 5700CE strikes. On the other hand, the Bulls were seen covering their positions. They 17 lacs+ OI from 5600 PE to 5800 PE strike. Overall, 5600 has now become the new 50:50 level between the Bulls and the Bears. 5500 and below are the supports. 5700 and above are the resistances. 5800 is the biggest resistance of this series now, with OI well above 90 lacs at 5800 CE strike.

For Monday, immediate resistance for Nifty Spot comes at 5580-5585 level. Staying above this, the Bulls will try to go for a retest of 5605 and 5630/5640 levels. Till it stays below 5630/5640 range, traders should be looking to Sell on Rises at resistance levels. Above 5630/5640, it will again enter into the trading range, and both side trades can be taken. On the downside, support for Nifty Spot comes at 5555/5560 levels. Below this, lies the Gap Support of 5525/5530. The Bulls are likely to try hard to defend this level. Below 5525, a Gap filling till 5435 level can occur, with minor supports in between at  5490 and 5450 levels.

19 Nov - Nifty Spot resistance at 5585-5605-5635-5655. Support at 5555-5525-5490-5450 - www.niftypower.com

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