7 Feb: Nifty View

Nifty fooled a lot of traders on Friday by giving a false breakout above 5545-5550 zone and then fell more than 150+ points, breaking 5400 in the process and closing well below it. The move must have trapped a lot of traders (including us!). These are the times when traders understand the importance of a stoploss! Trading is a game of probabilities and we should always take a high probability trade rather than questioning it or being afraid of it. But once we are proven wrong, it the Duty of the Trader to accept the Market's Supremacy and Bow Out of the Trade. Those who follow this simple approach, will never lose in the long run.

What has been surprising though, is the FII and DII figures from the NSE. The data shows that both of them bought on Friday. Also, have a look at the Options Open Interest Table given below:

Although we saw a good amount of Call writing at 5400 and 5500 levels, the puts did not cover in a hurry. The Bulls would certainly seem to think that a bottom is near, else they should cover their written Puts sooner than later. Even if these Puts are a part of Covered Shorts (Short Future and Short 5400 PE), then also these guys would not be expecting much downside from these levels. It will be interesting to watch the action at 5400 Strike from tomorrow to get a further clue on the market movement. For now, the Options table still suggests support for Nifty at 5400 Levels and Resistance at 5500 and above levels (though a weak one).

For tomorrow, immediate resistance for Nifty Spot comes at 5420-5425 level, above which, it will try and reach 5445-5460 levels. At higher levels, it is again expected to face selling pressure. On the downside, support for Nifty comes at 5360-5355 levels, below which, it is expected to slide towards 5320-5300 levels. At the extreme support and resistance levels, we would expect to see some quick volatile moves. Trade cautiously.

7 Feb: Nifty spot resistance at 5420-5445-5460-5495. Support at 5390-5360-5320-5300 - www.niftypower.com

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4 Feb: Nifty View

In yesterday's Nifty View, 5545 Spot was the level given for a breakout on the upside. After some reluctance at this level in the morning trades, Nifty made a smart move of 80+ points on the upside. Thereafter, it consolidated at the higher levels.

The Options Open Interest data table is given below:


5400 has become a strong support zone with almost 93 lacs+ OI at 5400 PE. 5500 and 560oo are the levels, at which the battle between the Bulls and the Bears will be fought now. Above 5600, stiff resistance still exists for Nifty. As of now, 5350 to 5660 seems to be the rangefor the Nifty for this expiry.

For tomorrow, immediate strong resistance for Nifty comes at 5545-5550- spot levels. If Nifty opens below and then is able to conquer these levels, it will move higher to test the levels 5580 and 5625. On the downside,support exists at 5500 levels, below which, it will test 5465-5445 on the downside. Below 5445, we would again see fresh selling.

4 Feb: Nifty spot resistance at 5545-5580-5600-5625. Support at 5520-5500-5485-5465 - www.niftypower.com

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3 Feb: Nifty View

On Wednesday, Nifty tried hard to climb higher on good global cues, but was unable to sustain the higher levels and slipped in the afternoon to close at nearly the lows of the day.

The Options Open Interest Table is given below:


The Battleground has shifted from 5600 to 5500 now with the Bears having an upper hand at this level. 5400-5350 is where the Bulls have a lot of support. If these levels break with corresponding unwinding in 5400 Puts, expect panic selling for much lower levels.

For today, watch the levels of 5400-5405 on the downside and 5445-5450 on the upside. Below 5400, Nifty will slide further towards 5370-5350 levels. Break and close below 5350 will bring real panic in the market. However, expect at least an intraday bounce from these levels, even if Nifty has to break it at a later stage. On the upside, immediate resistance for Nifty comes at 5445 levels, above which, it will again 5460-5495 levels.

3 Feb: Nifty spot resistance at 5445-5460-5475-5495-5525. Support at 5400-5370-5350-5300 - www.niftypower.com

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