3 Feb - Nifty View

Nifty made a Doji today on Daily charts, signifying indecision among the traders. It just managed to closed above the falling trendline resistance, and the Bulls also managed to save the 200 DMA in intraday declines today. The highs and lows of today now become important for the continuation of this trend or the start of a correction. On the downside, another level to watch out will be 5205 level, which was the close 27 Jan, on which day the hanging man pattern was formed on Daily Charts. A decline below these levels would be the first sign of a correction, to be confirmed by a break and close below 5160 level. Till then, stay with the trend.

The Nifty option OI Charts are given below:

Today was another day in which the Bulls dominated on the Options front. A huge amount of 28 lacs+ OI was added by the Bulls between 5100 PE to 5300 PE strikes. On the other hand, the Bears largely remained absent, and did not add/ subtract much from their positions. Overall, 5100 to 5300 is the narrow range developing for this series, with 5200 being the battleground level between the Bulls and the Bears.

For tomorrow, immediate resistance zone for Nifty Spot comes again lies in the 5260-5290 area. If it crosses this zone, then a rally towards 5335/5340 and 5400 levels cannot be ruled out. On the downside, support for Nifty Spot comes at todays low of 5225/5230, and then near 5205 level. Below this, it can test 5180/5160 in intraday. As given earlier, 5160 will be short term trend decider level, as of now.

3 Feb - Nifty Spot resistance at 5260-5285-5310-5335. Support at 5225-5205-5180-5160 - www.niftypower.com

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2 Feb - Nifty View

Nifty continued its upmove today also, and closed above its 200 DMA. This is a very Bullish sign and probably the start of a new Bull market, and end of the year long Bear market. However, for Long term investors, they should wait for a Higher Low to be formed on the charts, and then a Higher High to confirm the uptrend. For short term and medium term traders, the trend is already up, and only a break and close below 5100 will give the first sign of weakness. As of now, the Nifty has reached the falling trend line from Nov 2011 highs, and it remains to be seen whether it is able to cross an close above it. On the downside, 200 DMA will be the level the Bulls will try to protect now.

The Nifty option OI Charts are given below:

Both the Bulls and the Bears were in action today. The Bears added a big amount of 21 lacs+ OI at 5400 CE and 5500 CE strikes, while covering 5 lacs+ OI at 5200 CE strike. On the other hand, the Bulls have added a decent amount of 29 lacs+ OI from 5000 PE to 5400 PE strike. After todya's move, the range has shifted upwards and is now at 5100 to 5300. 5200 is a 50:50 level as of now.

For tomorrow, immediate resistance zone for Nifty Spot comes at 5260-5290 area. Nifty meets the falling trendline in this zone, and if it crosses this zone, then a rally towards 5335/5340 and 5400 levels cannot be ruled out. On the downside, support for Nifty Spot comes near the 200 DMA at 5205 level. Below this, it can test 5180/5160 in intraday. As Nifty has closed above 200 DMA, any correction towards the support levels are expected to be bought, till Nifty does not close below 200 DMA again.

2 Feb - Nifty Spot resistance at 5260-5285-5310-5335. Support at 5205-5180-5160-5140 - www.niftypower.com

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31 Jan - Nifty View

Nifty opened Gap Up today, traded rangebound within 30 points in the first half, before taking off in the last hour to cover all of yesterday's loss. It was a great comeback from the Bulls. Interesting thing to note is the higher volumes witnessed both today and yesterday. It seems like the classic battle between the Bulls and the Bears is going on just at the 200 DMA and the falling trendline resistance level. Who will win is anybody's guess, but it will be prudent for traders not to get carried away by today's and yesterday's move. Nifty is still where it was two days ago. This is the time to wait and watch. Once a confirmed breakout/ breakdown takes place, there will be enough opportunities to trade.

The Nifty option OI Charts are given below:

If it was Bears day yesterday, today belonged to the Bulls. They added a huge 36 lacs+ OI between 4700 PE to 5000 PE strikes. However, the Bears also did not cover the huge positions written yesterday. instead they added a small quantity of 8 lacs+ OI at 5100 CE and 5200 CE strikes. Overall, after today's move, 5200 level has become a minor resistance now, from a major resistance. 5300 is the biggest resistance level for this month, and this also comes near the falling trendline resistance. 5100 is now a minor support, while 5000 and 4800 are the major supports for the series.

For tomorrow, immediate resistance for Nifty spot comes at 5210-5230 levels. The Bears will try their best stop Nifty from crossing these levels, coz after this, the next major resistance comes above 200 DMA at 5285 level. On the downside, support for Nifty Spot comes at 5180 levels, below which, the next supports are at 5160-5140 and and 5125 levels. The short term trend deciding level can be considered to be 5100 now, up from 5050 level which was given yesterday.

1 Feb - Nifty Spot resistance at 5210-5230-5260-5285. Support at 5180-5160-5140-5125 - www.niftypower.com

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