17 Dec - Nifty View

On Friday, Nifty opened near its support of 5840 level, and recovered in intraday trade to close near 5880 level. For the past tow weeks, Nifty has traded within 100 point range of 5840 to 5940 Spot. This is also the high and low of the Hanging Man pattern which was given in the Nifty View of 5th December. Any substantial move will be expected if and when Nifty closes outside of this range. Till then, Positional traders can either wait and watch, or maintain Short Positions with Stoploss above 5945 on closing basis.

 The Nifty Option OI Charts are given below: 

The Nifty Option Charts were dominated by the Bulls on Friday, who added 14 lacs+ open interest at 5800 PE and 5900 PE strikes. The Bears did not do much on Friday. Overall, the Open Interest at 6000 CE remains at extremely high levels of 1.1 Crore+. This remains as the major resistance for this series. Nifty will find it very hard to cross this resistance level, and if it does so, it should give a substantial rally. A little below 6000 will become the Stoploss for a Long trade at that time. On the downside, 5800 is a major support level, with Open Interest at 5800 PE strike at 91 lacs+ at this time. 5900 remains as the 50:50 level for this series.

For Monday, the Bulls are expected to maintain an upper hand, till Nifty stays above the close of Friday. Immediate resistance for Nifty Spot comes at 5890/5905 levels. Above this, 5930 and 5950 are the next major resistance levels. On the downside, immediate support for Nifty Spot comes at 5870/5850 and 5835 levels. As given earlier, till the time Nifty is trading within the range of 5835 to 5950, it is better to trade intraday with tight stoplosses and quickly booking profits for small gains. Beyond this range, a substantial move is expected in Nifty.

17 Dec - Nifty Spot resistance at 5890-5905-5930-5950. Support at 5870-5850-5835-5815 - www.niftypower.com

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