31 Jan - Nifty View

The expected correction came came in Nifty today. How long it lasts, and whether it can change into a short term downtrend remains to be seen. The level to watch out for tomorrow will be 5040-5060 levels. Below this, the short term trend can be considered to have turned down, which will be invalidated only on a close above 5150. Tomorrow is also the monthly closing for Nifty. Hence, tomorrow's closing will become an important level for future trade plans. Nifty has already made a higher High in this uptrend move, Now all it has to do is make a higher low in this ongoing correction, so that the medium term trend remains up.

The Nifty option OI Charts are given below:

It was a day that belonged to the Bears. They added 18 lacs+ OI at 5100 CE and 5200 CE strikes. The Bulls did little addition in OI. The covered nearly 13 lacs OI at 4800 PE, 4900 PE and 5000 PE strikes. Although Nifty closed below 5100 level, the open interest in 5100 PE remains more than that of 5100 CE. Consider the momentum positive if Nifty stays above 5100, and negative below that. The narrow range remains at 5000 to 5200 for Nifty, with 5100 as the 50:50 level.

For tomorrow, immediate resistance for Nifty Spot comes at 5095/5100 levels. Above this, it will encounter next resistance at 5130 and 5160 levels. Above 5160, the momentum will again favour the Bulls. On the downside, support for Nifty Spot comes at 5065 and then at 5040/5045 levels. Below 5040, the short term trend will turn down.

31 Jan - Nifty Spot resistance at 5095-5130-5155-5190. Support at 5065-5040-5005-4960 - www.niftypower.com

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30 Jan - Nifty View

Nifty continued its relentless upmove on Friday, and had a consecutive fourth positive weekly closing. The trend firmly remains up, but the market is now waiting for a correction. We have now seen three days of declining volumes with increase in price. These volumes will only pick up if and when Nifty clears and closes above its 200 DMA comfortably. Secondly, there are also two big resistances of 200 DMA and the declining trendline. Coupled with that, the Stochastics and RSI on Daily Charts are in overbought zone now. All these factors will make the zone of 5220-5250 the toughest to cross for Nifty. On the downside, the supports built at 5050 and 4900 should hold, for the Bullish picture to remain intact.

The Nifty option OI Charts are given below:

Second day of the series saw some good writing from the Option traders. The Bulls added a huge amount of 30 lacs+ OI from 4800 PE to 5000 PE strikes. The Bears were mostly active at 5100 CE and 5200 CE strikes, where that added 20 lacs+ OI. Overall, the February series is narrowly poised, with the range coming between 5000 to 5200 levels, and 5100 being a minor support level.

For tomorrow, immediate resistance for Nifty spot comes at 5210-5230 levels. The Bears have their best chance to stall this upmove over here, coz after this, the next major resistance comes above 200 DMA at 5285 level. On the downside, support for Nifty Spot comes at 5170-5175 levels, below which, the next supports at 5140-5125 and 5090 will be tested. As given earlier, the Short Term trend remains up till 5050 levels, and any correction till there will be healthy for Nifty.

30 Jan - Nifty Spot resistance at 510-5230-5260-5285. Support at 5175-5140-5125-5090 - www.niftypower.com

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27 Jan - Nifty View

Nifty had a quiet Expiry on Wednesday, with a range of 45 points. It closed just above its resistance band of 5130-5150. Now at the start of the February Series, Nifty is just below its strong resistance of 200 DMA. Also, it has now again reached the falling trendline connecting the highs from November 2010. In the past year, it made several attempts to breakout above this trendline, but failed and had significant declines after that. If it manages to close and sustain above this trendline now, it will indicate an end to the Bear cycle that started in November 2010, and maybe, the start of a new Bull run. It has already made a Higher High, and on any declines, it is expected to make a higher low also. The only concern at this point of time are the Overbought Oscillators on Daily Charts. Hence, there may be a cap to the upside, at least for the coming 1-2 weeks.

The Nifty option OI Charts are given below:


Feb Series has atarted with a good amount of action on the options front. There was a huge amount of 40 lacs Puts added by the Bulls from 4600 PE to 5100 PE strikes. The Bears, on the other hand, were more restrained in their activity. The only significant amount of OI by the Bears was between 5000 CE to 5200 CE strikes, where they added 19 lacs+ OI. At the start of the Feb series, 4800 to 5200 is the range developing, with the level of 5100 as the battleground level between the Bulls and the Bears.

For tomorrow, immediate resistance for Nifty Spot comes at 5175-5180 levels. Above this, the momentum will stay with the Bulls, and they will attempt to take it towards its next strong resistance zone of 5210-5230, where the Bears have their best chance to stall this upmove. On the downside, support for Nifty Spot comes at 5130 levels, Below this, it will decline towards 5110-5085 and 5050 levels. 5050 will be a short term trend deciding level for the Nifty.

27 Jan - Nifty Spot resistance at 5180-5210-5230-5265. Support at 5110-5085-5050-5025 - www.niftypower.com

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