On Friday, Nifty opened down near its support of 5840, made an intraday recovery till around 5870 level, before sliding again to close near 5850 level. The trend remains down, and Positional traders should remain short and use the rises to Sell Nifty, till it is able to give a close above 5940/5950 level. Nifty had a Gap down opening on 21st Feb, and the minimum the Bulls need to change the trend is to fill this gap initially. The Gap resistance comes around 5920 level. Before that happens, immediate resistance for Nifty Spot comes at 5880 and 5905 levels. A close above 5880 will be the first indication of a Pause in this downward move. A close above 5920/5950 would indicate a short term trend change. On the other hand, a close below 5840 and 5820 can bring the much needed momentum for the Bears. Keep all these levels handy, as the budget week can bring a lot of wild moves in Nifty, and traders will have to be swift and plan their trades in advance. Safe traders can trade on intraday basis only with strict stoplosses.
The Nifty Option OI Charts are given below:
On the Nifty Options front, there was hardly any addition by the Bears on Friday. However, the Bulls added a good amount of 11 lacs+ OI at lower level Nifty Option of 5700 PE. The Bulls also covered a good amount of 6 lacs+ Open Interest in Nifty Option of 5900 PE. Overall, 5900 remains the 50:50 level for this series, with a slight advantage to the Bears at this moment. The support at 5800 has weakened, but it still remains the biggest support of this series. 6000 is a major resistance now, with Open Interest at 6000 CE Nifty Option crossing the 1 Crore mark.
For Monday, immediate resistance for Nifty Spot comes around 5880 level. Any rise upto this level can be used to build short positions by intraday traders. However, if Nifty sustains above this level, then the Bulls can take it to its next resistance level of 5900 and 5920. On the downside, Support for Nifty Spot comes around 5840 levels. Below this, the next strong support area for Nifty Spot is around 5820 level. Below these levels, the much needed downward momentum can come, which will take Nifty towards 5795 and 5760 levels.
25 Feb - Nifty Spot resistance at 5880-5900-5920-5940. Support at 5840-5820-5795-5760 - www.niftypower.com
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