6 Sep: Nifty View

Nifty entered into a Pause mode from the recent rally today. 4900/4880 on the downside and 5080/5120 is the broad range developing as of now. Between them, 4945 and 5035 are the immediate breakout/ breakdown levels. Trades can be entered on violation of the immediate levels, which will be confirmed only on a breakout/ breakdown from the larger range.

The Option OI Charts are given below:

Once again, there is significant addition at deep OTM strike of 4400 PE. As usual, we will continue to ignore this data. Such addition can be a part of some hedging strategy or covered trades. Naked writing at such faraway levels does not make sense. Apart from this, Bulls added OI at 4800 PE to 5100 PE strikes, while the Bears still chose to stay away once again, adding a small amount of OI at 5000 CE and 5100 CE strike. From the Options charts, 4800 to 5200 is the broad range, with 5000 being the battlezone level as of now. 4900 is a minor support, and 5100 is a minor resistance.

For tomorrow, immediate resistance for Nifty Spot comes at 5035/5040 levels. Above this, it will target its higher resistance areas of 5080-5110 and 5155. On the downside, support for Nifty Spot comes at 5000-5005 levels. If trades below this in morning, it will towards lower support area of 4965 and 4945. Below 4945, some panic selling will be witnessed for lower levels of 4920 and 4880. As written earlier, consider 4945 and 5035 as immediate breakout levels. Between them trade the narrowing range with the help of oscillators.

6 Sep: Nifty Spot resistance at 5035-5080-5110-5155. Support at 5000-4965-4945-4920 - www.niftypower.com

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5 Sep: Nifty View

Nifty posted good gains last week, rallying from 4749 to end nearly 300 points up. This upmove can be a technical bounce or the start of a new upmove. If it is the start of a new upmove, traders can afford to wait for a confirmation to the trend change. There will be plenty of opportunities to go long. However, if one wants to go short, this might be a golden opportunity. Nifty has rallied in a truncated week. Real trend will be decided this week. Hence, keep close watch on the important support zones formed on the way up. If these fail to hold, the downtrend would resume.

The Option OI Charts are given below:


There was unusually high addition of OI at OTM strikes of 5400 CE and 4400 PE. We will ignore them for the time being (they can be the broad range for this series). Apart from that, there was big addition at 4700 PE and 5000 PE strikes by the Bulls. From the Bear camp, nothing much is happening for the past few days. They are playing a wait and watch game. We will have to wait for them to take some action on a Down day, to be more clear on the developing range. For now, 5100 and above are the resistances. 4800 and below are the supports. 4900 is a minor support, while 5000 is the battlezone level between the Bulls and the Bears.

For tomorrow, immediate support for Nifty Spot comes around 5010-5015 levels. Below this, the Bears can drive Nifty down towards 4990/4980 levels. If 4990 breaks, important supports on the downside will come at 4950 and 4925 levels. Below 4925, this upmove will be in question. On the upside, resistance for Nifty spot comes at 5060/5065 levels. If it manages to stay above this, it will move towards higher resistance levels of 5080-5110 and 5150 levels.

5 Sep: Nifty Spot resistance at 5065-5080-5110-5150. Support at 5010-4990-4950-4925 - www.niftypower.com

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2 Sep: Nifty View

Nifty gave a good follow-up move on Tuesday, for the thumping rally on Monday. The trend can be considered to have turned neutral from Down earlier. Now is the time to start trading and look for a range to develop. The Options OI analysis will also give us some clues regarding that. 4850 on the downside, and 5150/5180 on the upside are the immediate strong resistance and support levels.

The Option OI Charts are given below:


The Bears did almost nothing on Tuesday, Just covering some of their shorts from 4700 to 4900 levels. The Bulls, however, went on overdrive. Big amount of OI was added by them from 4600 to 5000 PE strikes. Just hope that this overconfidence from the Bulls does not backfire - as it did in the last series. Overall, from the Options Charts, 4800 to 5100 is the reange developing, with 4900 as a minor support and 5000 as the battlezone level between the Bulls and the Bears.

For Friday, immediate resistance for Nifty Spot comes at 5030/5035 levels. Staying above this, it will enter into strong resistance area of 5060/5065 levels, where again some selling pressure should emerge. Above 5065, levels to watch out are 5080, 5110 and 5150. On the downside, support for Nifty Spot comes at 5000/4995 level. Below this, it will slide towards 4970 and 4940/4925 levels. Support should come at those levels,as a break of 4925 on the downside can now damage the short term technicals.

2 Sep: Nifty Spot resistance at 5030-5060-5080-5110. Support at 4995-4970-4940-4925 - www.niftypower.com

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