31 Jan: Nifty View

As if the drubbing by the Bears was not enough for the Nifty, Global Cues also have started deteriorating now. Surely, the Bulls have some sleepless nights coming for them. We would not like to trade our markets after seeing the Global markets (unless the News becomes too Big to swallow, of course!), however, it is definitely not the time to be adventurous.

Nifty, after breaking its 200 DMA, is now set to test the breakout levels of September, 2010. If these levels also give way, it would make sense to stay out of Buying Mode till we get a confirmed reversal again. It is trading at oversold levels. If this fall has to halt, it should Halt before 5350 is breached on Nifty Spot. Otherwise, we will brace ourselves for more falls.

The Options Open Interest Table is given below. The high OI in Puts of 5500 and below indicate support for the Bulls below 5500 levels. 5600 is the new battle zone, 5700 being won by the Bears. Hence, 5630-5660 can be considered to be stiff resistance, if Nifty want to move up from here. On the downside, supports can be 5480-5460 levels. Break from this range will give further cues.

For tomorrow, intraday watch the levels of 5545 on upside and 5500 on downside on Nifty Spot. Break on either side of these levels can give good momentum trades of 30-40 points or more. Upside resistances are places at 5575-5590-5615. Supports on the downside are at 5480-5460 levels. If Nifty opens Gap Down or Gap Up beyond these levels, then traders can look for the break direction of first hour range to determine the trade direction.

31 Jan: Nifty Spot resistance at 5545-5575-5590-5615. Support at 5500-5480-5460-5400 - www.niftypower.com

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28 Jan: Nifty View

5730 did the trick again. Nifty opened right at this resistance zone and started falling right away. It kept correcting for entire day, never giving a chance for the Bulls to show any strength. The January expiry happened at the lowest level of the series. Historically, January closings have been important for the market. Hence, it will be very interesting to watch where the market goes from here.

The Options OI data show that the Bulls have added Puts at 5600, 5500 and 5400 strikes. It is still too early to deduct anything from the OI, but one thing that comes out clearly from it is the battle zone at 5700. It has almost equal Open Interest at this stage. Puts have more OI 5700 strike, and Calls have more OI above 5700 strikes. The activity at 5700 strike in coming days will give more indication of the coming movement in Nifty.

For tomorrow, immediate resistance for Nifty Spot now comes at 5630-5635 levels. Sustaining above 5635, Nifty would try to attempt 5655-5660 and 5690 levels. On the downside, support for Nifty Spot comes at 5585 levels, below which, strong support comes at 5550-5530 levels. Nifty is at an oversold level and a bounceback towards 5650 levels cannot be ruled out. But this market will continue to be a Sell on Rises kind of market, till it closes at least above today's high of 5725-5730 now.

28 Jan: Nifty spot resistance at 5630-5655-5690-5705. Support at 5600-5585-5550-5530 - www.niftypower.com

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27 Jan: Nifty View - Expiry Day

It is Expiry Day. There has been enough drama already in this series already. A finish above 5800, or below 5600 would be apt for the climax! While there are slim chances of this actually happening, but this series has been anything but predictable. Hence, an expiry at or near 5700 levels (to which the data is pointing), would not be an apt ending for this series. Lets see whats in store for us.

For tomorrow, resistance for Nifty Spot comes at 5710 levels, above which, it will again try to attempt 5730-5750 levels. Above 5750, the game for 5800+ will be On. On the downside, support for Nifty Spot comes at 5670-5665 levels. If this level breaks, next support comes at 5635 levels, below which, the game for 5600 and below will be On. Traders can try for a straddle of 5700 PE and 5700 CE, if they get it at a premium of less than Rs. 20. That would be a low risk, and a high reward gamble on Expiry Day.

27 Jan: Nifty spot resistance at 5710-5730-5750-5790. Support at 5675-5660-5635-5605 - www.niftypower.com

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