On Tuesday, Nifty opened flat, declined in intraday trade and took support near its support level of 5890, then tried a recovery and closed near 5915 level. Nifty has formed a well defined resistance near around 5970 Spot level. This level has resisted/ supported Nifty on at least 5 occasions, as marked in the attached chart. The Bulls need to close Nifty above this level, if they want to take it to new highs. On the downside, support for Nifty Spot comes at around todays low, in the 5880/5890 zone. Below this level also, Nifty has well defined support areas around 5860 and 5820 levels. Hence, all traders ho want to build Short positions, should do so near the resistance level of 5950 and 5970, and not on the break of the support levels, as it would be risky. Also, traders should be quick to reverse to Long positions above 5970 Nifty Spot level. As of now, 5890 to 5970 is the immediate 100 point range for Nifty. Breakout from this range is expected to bring some good moves.
The Nifty Option OI Charts are given below:
On the Nifty Options front, there was plenty of activity seen in the OTM put options.However, when we look at the ATM Options, the Bulls added to their positions at Nifty options of 5800 PE strike, while the Bears added to their positions in Nifty Options of 6000 CE strike. Overall, from the Nifty Options charts, 5800 and 5700 come out as the clear support areas, with Open Interest in Put Options of both these strikes crossing 1 Crore. 5900 is a clear 50:50 level as of now. However, in terms of resistances, the Bears haven't matched to the Bulls, and there is no comparable resistance level from the Nifty Options Charts. Hence, Overall, the Options Charts paint a very bullish picture as of now.
For 13th March, immediate resistance for Nifty Spot comes near 5940/5945 levels. Only if it stays above this level, can the bulls hope for a retest of the strong resistance level of 5970. Once above 5970, more short covering rally can easily take Nifty towards 6050/6075 level, with minor resistances at 6025/6030 level. On the downside, support for Nifty Spot comes at 5905 and then at 5885 levels. The Bears will find it very hard to break these levels, and any fall towards these levels should be used as a buying opportunity, with a Stoploss below 5885. Below 5885, the Bears are expected to gain an upper hand, and they will press Nifty down towards 5860 and 5820 kind of levels.
13 Mar - Nifty Spot resistance at 5940-5970-6005-6025. Support at 5905-5885-5860-5840 - www.niftypower.com
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