10 Sep - Nifty View

On Friday, Nifty future opened flat and after an initial hiccup, continued its uptrend to close another strong day near 5700 Nifty Future level. Nifty Future is now near striking distance of a very strong resistance near 5750/5760, from where the really volatile downmove started. A strong move and close above this level will give further credibility to this upmove, and fresh buyers will enter into the market. However, failure to do so will mean an unclear direction for Nifty Future, and then we will have to see how Nifty Future reacts at immediate gap support level of 5545. Between the 200 point range of 5545 to 5750, it is better to trade both sides on intraday basis. Also note that Nifty Future is forming higher lows and higher highs on Daily Charts, hence, bias of traders should be on the upside, as long as this pattern is not broken, or at least till 5545 is being protected on closing basis.

The Nifty Options Open Interest Charts are given below:

On the Nifty Options front, there was not much activity by both the Bulls and the Bears on Friday. The Bulls were active in Nifty Options of 5400 PE to 5700 PE, where they cumulatively added 27 lacs+ Open Interest. On the other hand, there was hardly any Open Interest added in Call Options on Friday. Overall, 5300 PE remains as the strike with highest Open Interest, indicating that this will be a strong support area for Nifty Future in this series. On the other hand the highest Open Interest in Calls is at 5700 CE strike. However, the Open Interest at all other strikes is too less at this stage to term them as key resistance or support levels. 5600 is the 50:50 level between the Bulls and the Bears as of now.

For Tuesday, immediate resistance for Nifty Future now comes at 5705/5710 levels, above which, the Bulls should be able to take it to higher levels of 5725/5745 and 5760. As given earlier, above 5760, fresh buyers will be expected to enter into the market, and we can see another rally in Nifty Future. On the downside, support for Nifty Future comes at 5670/5660 levels. Below this, there can be an intraday correction towards 5625/5615, and 5585 level.

10 Sep - Nifty Future resistance at 5705-5725-5745-5760. Support at 5665-5620-5605-5585 - www.niftypower.com

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