2 Jan - Nifty View

On the Last Day of 2011, nifty closed on a negative at the lows of day near 4620 levels. Positional traders who are in Shorts from 4700 levels can now move their stoploss near Cost and trade safe. Trend remains down till Nifty does not give a close above 4720 now. On the downside, the previous Swing lows 4550/4530 will be important supports to watch out are. Important to note is the falling trendline being formed on the Daily Charts. If Nifty takes support on this falling trendline and bounces from the lows, it will form a Bullish Wolfe Wave on Daily Charts, which can lead to a big recovery. Having said that, there is no need to Speculate and try and find the market bottoms, because if at all any recovery comes, then Long Trades should be initiated Only After Nifty gives a close above 4720.

The Nifty option OI Charts are given below:

At the start of the series, it was interesting to see good addition by both, the Bulls and the Bears. The Bulls added a good amount of 16 lacs+ OI at 4500 PE and 4600 PE strikes. Bears also added big amount of 31 lacs+ OI from 4700 CE to 5000 CE strikes. overall, at the start of the series, 4500 to 5000 is the range developing from the Options Charts. 4600 is a minor support, while 4700 and above are the resistances as of now.

For tomorrow, immediate resistance for Nifty Spot comes at earlier support of 4635/4640 levels. Staying above this, it will head for higher level resistances of 4670/4680 levels, where again the Bears are expected to become active. If somehow the bulls manage to clear this resistance zone, the the trend changing level of 4720 will be the next big resistance for Nifty Spot. on the downside, support for Nifty Spot comes around 4600/4595 levels. Below this zone, the Bears can easily push it down towards recent lows of 4555/4530 levels, and probably even lower levels. For tomorrow, Stay Short as long as Nifty stays below 4630 level.

2 Jan - Nifty Spot resistance at 4635-4670-4700-4725. Support at 4595-4555-4530-4480 - www.niftypower.com

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Happy New Year 2012 to All Readers!

30 Dec - Nifty View

Nifty opened below the zone of 4690-4720 today, briefly moved into the range during intraday, making a high near 4700 levels, before crashing in late market action to its next support of 4640. Short trades have been triggered today and should now have a stoploss (and Reverse) above 4720 on closing basis. Till Nifty does not give a close above 4720/ 4760 now, consider the trend as Down and Sell on Rallies. Believe in all moves of the market, even if it gives several whipsaws. Because seeing beyond the prices unfolding on the screen is something which is not possible in this market. There are no Fortune Tellers in the market, and Fortune Tellers seldom know the reality. Money can only be made here by religiously "Following" the prices and becoming a Student of the Market.

The Nifty option OI Charts are given below:


As we enter into a new series, the broad range forming as per the Options Charts is 4500 to 5000. The Bears have added maximum OI at 4700 CE strike today, and this level almost has equal OI in Calls and Puts. Hence, this level will again be important in the January Series, and also coincides with the level of 4720 given above. 4600 is also forming as a minor support for Nifty.

For tomorrow, immediate resistance for Nifty Spot comes at 4665/4670. Above this, it will head for its next resistance level of 4690. The zone of 4690 to 4720 is a No trading Zone as of now. Stay short below 4690 and reverse to Longs only above 4720/4725. On the downside, support for Nifty Spot comes at todays lows of 4635/4640. Below this, the Bears will have an upper hand and will try to push Nifty towards lower levels of 4610, 4585 and 4550 levels.

30 Dec - Nifty Spot resistance at 4665-4690-4720-4755, Support at 4635-4610-4585-4550 - www.niftypower.com

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