On Wednesday, Nifty opened down on negative global cues, and continued down to close near 5640 Nifty Future level, making it the largest single day drop in recent memory. 5770 Nifty Future was our reference level to go short. However, since Nifty opened much below it, there was no logical trade possible. Hence, Positional traders who could not enter into a short trade, should now wait for the right opportunity. As of now, the trend has surely turned down. The resistances are clear on the upside, which should act as trailing stoploss/ re-entry levels for shorts. The immediate resistance level as of now is around 5750/5770, which is the Gap opening level. Above this, the level of 5830 and 5890 will be strong resistance levels. However, there are slim chances of Nifty visiting these levels anytime soon. On the downside, the first support level to watch on Nifty Future will be in the 5630/5640 zone. If this zone is broken, then a slide towards recent low near 5480 will be on the cards, with minor supports coming in between at 5590/5560-5535 and 5510.
The Nifty Option Open Interest Charts are given below:
On the Nifty Options front, it was another day dominated by the Bears, as expected. They added a huge quantity if 90 lacs+ Open Interest in Nifty Options of 5600 CE to 5800 CE strike. Some of these additions may be part of hedges. But overall, it must be the largest addition in Nifty Calls in a day in the recent past. On the other hand, the Bulls also added 16 lacs+ Open Interest in Nifty Options of 5600 PE. While this is a huge quantity in itself, but it pales when compare to Call addition. Overall, from the Nifty Options Charts, it can be seen that the Bears have moved the 50:50 level from 5800 to 5700. 5600 is minor support remaining for the Bulls. 5800 and above are the major resistances now.
For tomorrow, immediate resistance for Nifty Future comes near 5660/5665 levels. Above this, the Bulls will try to hit next resistance level near 5695. However, every upmove should now be expected to meet with selling pressure, hence, short trades at resistances should be preferred by the traders. On the downside, support for Nifty Future comes near 5630/5640 levels. Below this, the Bears will continue to apply pressure, and take Nifty further down towards 5590-5570-5560 and 5535 levels.
21 June - Nifty Future resistance at 5665-5695-5715-5750. Support at 5635-5590-5570-5560 - www.niftypower.com
P.S.:
You can see Live Nifty Charts with Buy Sell Signals during market hours Free on our website www.niftycharts.co.in
Also, Read our Daily Nifty Analysis published on our Blogwww.nifty-power.blogspot.in and have an Edge in you trading
For our regular Paid SMS Services, see Rates and Services Page on www.niftypower.com
Posts
No comments:
Post a Comment