On Friday, Nifty Future, after giving a breakdown signal on Thursday, reversed and gave a Breakdown Failure, and rallied more than 100+ points to close above 6200+ levels. The short term trend remains up in Nifty, and will be considered up as long as it remains above 6050-6080 levels. For aggressive traders, 6150/6130 will be the immediate support levels, which can also be considered as a Stoploss for Long trades. Nifty Future is trading near important resistance levels, it is also within striking distance of all time highs. The Oscillators are reaching overbought levels. Inspite of all the uncertainty, price is showing strength, and that is what traders should follow, unless proven otherwise. Hence, in summary, the correct trade right now is a Long Trade. 6130 can be aggressive Stoploss or Stop and Reverse for Long Trades. Downtrend to be confirmed by a close below 6080/6050, below which Shorts with Full position can be opened.
The Nifty Options Open Interest Charts are given below:
On the Nifty Options front, Friday was the Bull's Day Out. They added a huge amount of 32 lacs+ Open Interest in Put Options of 6100 PE and 6200 PE. On the other hand, the Bears were seen covering their positions in Nifty Option of 6200 CE. Overall, 6000 PE and 5700 PE are showing the highest Open Interest in Puts for this series, indicating strong support at these levels. For the Bears, 6300 CE has the highest Open Interest as of now. 6200 is the current 50:50 level between the Bulls and the Bears.
For Monday, immediate resistance for Nifty Future now comes at 6215/6220 levels, above which the Bulls will target 6250-6270 and 6285 levels. The Bulls will continue to have an upper hand, as long as Nifty Future stays above 6200 on Monday. On the downside, immediate support for Nifty Future comes at 6200/6190 level. Below this, the Bears can take it down towards supports at 6165/6150 and 6130 levels. Buying is expected to come at all these levels, and Bears will gain an upper hand only if they are able to close Nifty below 6130 level.
21 Oct - Nifty Future resistance at 6220-6250-6270-6285. Support at 6190-6165-6150-6130 - www.niftypower.com
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