2 Sep - Nifty View

On Friday, Nifty Future traded with great volatility but managed to end the third consecutive day in the green, and closed near 5456 level. The recent downmove in Nifty has dented the confidence of a lot of bulls, but there are some encouraging signals for them on the charts. On weekly charts, Nifty future has formed two consecutive bullish pin bars now. Further, on Daily Charts, RSI has shown a clear positive divergence from oversold levels. Hence, next week, aggressive traders can try some small Positional long trades with Stoploss around 5350 Nifty Future level initially. A move above recent high near 5530 will give more confidence to the bulls, and positions can be added if Nifty Future moves above that level. On the downside, fresh shorts can be considered if Nifty future gives a close below 5350 now.  

The Nifty Options Open Interest Charts are given below:

On the Nifty Options front, positions are still building up as it is the start of the series. However, the only strike price that stands out is that of Nifty 5300 Put. It has the highest amount of Open Interest as of now, indicating that this level may act as some kind of support now. Also note that, from this series, NSE has reduced strike price intervals in Nifty Options to 50. Click here to read the NSE Circular for the same. We still have to see how it affects the liquidity in Nifty Options Strike prices in this series.

For tomorrow, immediate resistance for Nifty Future comes at around 5480 level. If the Bulls manage to take it above this level, the next major resistance ill come at 5525/5530 and then at 5590 level. On the downside, support for Nifty Future comes at 5440/5450 zone. Below these levels, the Bears should dominate the Bulls, and can take Nifty Future down towards 5405/5390 and 5355/5360 levels.

2 Sep - Nifty Future resistance at 5480-5500-5530-5550. Support at 5445-5405-5390-5355 - www.niftypower.com

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