On Thursday, after a volatile session, Nifty once again closed in the red, making a new low in the short term charts. Nifty is now near near a very important support zone of 5630-5660, break of which can bring another swift 100 point downmove till next support of 5550. Today's high of 5760 will be an important level to watch, for a short term trend change in Nifty. Last time, this support zone of 5630-5660 gave a 300 point rally. Two weeks later, Nifty is again retesting this level. Whether it will hold again now, or break to produce lower levels, is anybody's guess. As traders, it is better to play a wait and watch game, and book profit in Shorts by the end of this week. Next week is also a holiday truncated week, as well as Expiry week. Fresh views can be taken after that.
The Nifty Option OI Charts are given below:
The Nifty Options charts show the dominance of the Bears today. They added a huge quantity of 22 lacs+ Open Interest at 5600 CE to 5800 CE strikes. On the other hand, the Bulls covered a huge quantity of Open interest in their 5800 PE and 5900 PE strikes. Overall, the Nifty Options charts show resistances at 5800 and above level for this series now. As of now, 5700 is a 50:50 level, although Nifty has closed well below this level.
For Friday, immediate strong resistance for Nifty Spot now comes at 5690/5695 levels. As long as it stays below these levels, Nifty is a Sell on Rises. However, if the Bulls somehow manages to trade Nifty above this level, then a retest of resistances at 5725/5730 and 5760 will be expected. On the downside, strong support levels for Nifty Spot comes at 5650 and then at 5630/5625. Below 5625, next strong support for Nifty will come at 5550/5520, with minor supports in between at 5590/5565 levels.
22 Mar - Nifty Spot resistance at 5695-5725-5760-5795. Support at 5650-5625-5590-5565 - www.niftypower.com
P.S.:
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