On Thursday, Nifty opened flat, tried to move up in intraday trade, but met with resistance exactly near the previous breakout level of 5940, and then declined to close below 5900 level. As given in previous Nifty View, the trend remains down and Positional traders should remain short as long as Nifty Spot is closing below 5940 level. We will consider the trend to turn up only when the Bulls manage to take out the resistance zone of 5980/5990. However, to lock in some profits, aggressive traders can shift their stoploss to 5940 Nifty Spot level. Nifty remains as Sell on Rallies till then, even though the oscillators are reaching oversold levels on Daily charts. The immediate logical support below 5890 comes at 5860/5840 zone, from where it has bounced on previous occasions. A break of these levels will bring in a much larger correction in Nifty.
The Nifty Option OI Charts are given below:
On the Nifty Options front, the Bears added a good amount of open interest at Nifty Option strikes of 5900 CE to 6100 CE. On the other hand, the Bulls hardly did anything. Overall, looking at the Option Charts, the Bulls seem to believe that the level of 5900 will hold, and Nifty should bounce back from here. This is indicated from the highest open interest at 5900 PE strike. The level of 6000 can be considered a minor resistance for now, while 6100 and above are major resistances for this month.
For Friday, immediate resistance for Nifty Spot comes at 5905/5910 level. Above this, the zone of 5930/5940 will prove to be a major resistance area for Nifty. If the Bulls manage to take it out again, then they can push for a short covering rally till 5980/5990 levels. On the downside, supports for Nifty Spot comes 5890, and then at 5860/5840 levels. Below 5840, the Bulls will start to panic.
15 Feb - Nifty Spot resistance at 5905-5935-5960-5985. Support at 5890-5860-5840-5820 - www.niftypower.com
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