June 3: Nifty View

On Thursday, Nifty opened gap down below 5550, tested 5520 and then recovered to close at 5553+. Once again, it reacted in a similar manner near 5600 as it had done on previous occasions, by giving a big Gap-Up/ Gap-Down. This level is becoming the most important level of 2011. For now, 5585 and 5615 are the next big resistance for the Nifty, while 5520 and 5500 are the supports. Any move outside of these levels should be considered a breakout/ breakdown.

The Options OI data is given below:


The Options OI table is quite clear as of now, and substantiates our levels given above. 5500 and below are the supports, while 5600 and above are the resistance zones. The range given by option table is the 100 point range between 5500 and 5600. However, a closer look at the numbers will show that there is not much of a difference between the Put and Calls of 5500 and 5600 strikes. The difference can vanish in one day, if Nifty break out of the range. Seems like the option writers are also waiting for more confirmation.

For tomorrow, upside resistance for Nifty spot comes at 5585 level. Above this, it will head for 5600/5630 levels. Above 5630, we will see some panic among the Bears, and a quick short covering rally. On the downside, support for Nifty spot comes at 5530/5520 levels. Below this, we will see a test of 5505 level. If it trades blow 5505/5500 for some time, Bears will taste blood again, and will try to drag nifty to 5480, 5440 levels tomorrow itself. Intraday traders can trade the breakout/ breakdown as per the levels given.

3 June: Nifty spot resistance at 5585-5600-5630-5660. Support at 5520-5500-5480-5440 - www.niftypower.com

Visit here for Nifty Options Tips

2 June:Nifty View

On Wednesday, Nifty traded in a rangebound manner, testing 5600, but was unable to cross and close above it. The importance that this level has, can be gauges from the circled regions in the chart. Since the beginning of this year, Nifty has given big moves on being resisted and supported at this level. This might be the right time to buy an Option Straddle, as volatility is expected to increase near this level.

The options OI data is given below:

The Options OI data indicate a range of 5400 to 5600 for the Nifty. There was no significant activity by the Bears today on the Calls side. The Bulls added 9lacs+ OI at 5500 Put. On any downmove and test of 5500, the activity 5500 PE will now show the true strength of these bulls. For trend change, a move past 5610 on the upside and 5430 on the downside can be considered to be the breakout/breakdown levels.

For tomorrow, immediate resistance for Nifty spot comes at 5605 and 5625 levels. Sustaining above these, it will force the Bears to cover and test higher levels of 5660-5695 levels. On the downside, support for Nifty spot comes at 5575 levels. Below this it will first fall towards 5550 level. Below 5550, Bears will have upper hand for the day, and we may see a test of 5500.

2 June: Nifty spot resistance at 5605-5625-5660-5695. Support at 5575-5550-5530-5500 - www.niftypower.com

Visit here for Nifty Tips

1 June: Nifty View

Today, nifty future opened up above its resistance zone of 5480-5485, tested it during intraday and then shot up to reach 5570+ levels. With this, we closed our Positional Long trade today. gaining 100+ points. The month of May has been very good for us, and we hope to continue with similar performance in future. BTW, the update for positional longs was also given free on Twitter and Smsgupshup. Readers who would wish to receive our updates on their mobile can join our group on any of these websites.

The Options OI Table is given below:


The Options OI table indicate support for th Nifty at 5400 and 5300 levels, while resistance is at 5600 and above levels. The Bulls added Puts today at 5300 to 5600 strikes, while the Bears covered Calls at 5500 levels, and added some 5600 and above levels. 5500 is the battlezone level, with a positive bias for the time being.

For tomorrow, immediate resistance for Nifty spot comes at 5580-5585 levels. Above this, it will target the next strong resistance zone of 5615-5630. A close above 5630 will arrest the downtrend for the time being. On the downside, support for Nifty spot now comes at 5550/5555 levels. If it slips below this, it will test lower supports of 5505-5490 and 5470 levels. Till the time it stays above 5430 for now, dont be too Bearish.

1 June: Nifty Spot resistance at 5585-5615-5635-5660. Support at 5550-5505-5490-5470 - www.niftypower.com

Visit here for Nifty Option Tips