Nifty Views from NiftyPower

[NiftyPower]

28 Dec - Nifty View

On Thursday, Nifty opened, but continued to decline for entire day, and finished the December series at 5870 Spot level. Entire month of December was largely spent within the 100 point range of 5840 to 5940. Now with the start of a new series, traders can hope for a breakout/ breakdown. When that will happen is anybody's guess. Till it happens, positional traders can wait on the sidelines, or do intraday trades with tight stoplosses and small targets. Trading will be easy beyond this range. There is no pint in trying to predict and trade micro moves within this small range.

The Nifty Option OI Charts are given below:

On the Options front, there was good addition by both the Bulls and the Bears, as would be expected at the start of a new series. The Bulls were mainly active in Nifty Options of 5500 PE to 6000 PE. The Bears were mainly active in Nifty Options of 5900 CE to 6300 CE. Maximum addition in open interest was at nifty option of 6000 CE by the Bears, where they added 11 lacs+ open interest. Overall, 6000 is once again standing tall as the major resistance for this series also. 5800 and below are the supports, while 5900 is the 50:50 level. The open interest at various strikes are very low to make any conclusion from the Nifty Option Charts. These charts will be more relevant after the next 3-4 trading days.

For Friday, immediate resistance for Nifty Spot will now come at 5870/5890 levels. If the Bulls manage to sustain Nifty above these levels, then it will again head for strong resistance areas of 5905/5930 and 5945 levels. Above 5945, it will be a major breakout for Nifty. On the downside, support for Nifty Spot comes at 5850 levels. Staying below this, Nifty Spot will head for lower level supports of 5835 and 5815 levels. Below 5815, 5790/5770 and 5745 will be targets.

28 Dec - Nifty Spot resistance at 5870-5890-5905-5930. Support at 5850-5835-5815-5790

 

[NiftyPower]

31 Dec - Nifty View

On Friday, Nifty formed and Inside Day on Daily charts, by trading within the range of Thursday, and closing near 5908 level. Monday is the monthly close, as well as the yearly close for Nifty. Whether it breaks out of the 100 point one, within which it has been trading for entire December, remains to be seen. Till that happens, Nifty View for traders remains the same. Positional traders can either wait for a breakout, or trade the zone of 5840 to 5940, buying near the low and selling near the high, with a 20 point Stoploss and Reverse trade.

The Nifty Option OI Charts are given below:

In Nifty Options, it was the first day of the series, and as is expected, there was good amount of open interest addition by the Bulls. The Bulls added a huge quantity of 35 lacs+ open interest in Nifty option strikes of 5600 PE to 5900 PE. On the other hand, the Bears were a little subdues, and added only around 16 lacs+ open interest at Nifty Option strikes of 6100 CE and 6200 CE.Overall, at the start of the series, the Nifty Option charts look very similar to the December series, with 5900 as the 50:50 level, and 5800 and 6000 as support and resistance levels.

For Monday, immediate resistance for Nifty Spot comes at 5905/5910 level. Staying above this, the Bulls will try for higher level resistances of 5930 and 5945. Above 5945, it will be breakout and we can witness a short covering rally till 5990 and 6020 levels. On the downside, support for Nifty Spot comes at 5890 level. Below this, the Bears will continue to have an upper hand, and they will push Nifty down towards 5870/5850 and 5835 levels.

31 Dec - Nifty Spot resistance at 5905-5930-5945-5990. Support at 5890-5870-5850-5835

 

[NiftyPower]

3 Jan - Nifty View

On Wednesday, Nifty again opened Gap up, and then traded in a narrow band to close near 5990 level. The trend is up since Nifty broke out from the zone of 5840 to 5940, and it should be considered to be up only, till the time Nifty gives a close below 5920/5930 level again. Positional traders should have opened long positions on Tuesday itself, when Nifty closed above 5940 level. They can now keep their stoploss below 5920 Nifty Spot level. On the upside, Nifty is right at its next resistance point of 5990. Above this, 6020 and 6075/6080 are next major resistances to watch out for.

The Nifty Option OI Charts are given below:

On the Options front, the Bears are busy building a fortress at higher levels. They added a huge quantity of 33 lacs+ open interest in nifty option strikes of 6200 CE to 6400 CE. On the other hand, the only significant open interest addition by the Bulls was that at nifty option strike of 6100 PE, where they added 8 lacs+ open interest. Overall, there is no 50:50 level in the Option Charts as of now. 5900 is a minor support, while 6000 is a minor resistance. 5800 is the biggest support level for the Bulls, while 6200 is the biggest resistance level as of now.

For Thursday, immediate resistance for Nifty Spot comes at 5990/5995 level. Staying above this, the Bulls will be in control, and they will take Nifty higher towards 6020 and 6050/6075 levels. On the downside, support for Nifty Spot comes at the Gap level of 5980 of today. Below this, gap filling can happen, which can take Nifty down towards 5960 and 5945/5930 levels. Till the time Nifty sustains above 5930/5925 level, the short term trend should be considered to be up only.

3 Dec - Nifty Spot resistance at 5995-6020-6050-6075. Support at 5980-5960-5945-5930

 

[NiftyPower]

7 Jan - Nifty View

On Monday, Nifty opened up, and after trading rangebound for most part of the day, declined to close near the lowest level of the day at 5980 level. 5980 was also the gap support level for Nifty spot, which, it had been able to defend last week. Sustaining below this level will be the first sign of weakness. Aggressive traders can close their Long positions and go short below 5980 on closing basis, with a tight stoploss above 6020 closing on Nifty Spot. Confirmation of this short trade will come only when Nifty spot closes below 5940 Spot level. Hence, conservative traders can skip this aggressive trade and wait for a confirmed signal.

The Nifty Option OI Charts are given below:

On the Nifty Options front, it was a nothing kind of day, with the Bulls not doing much and the Bears also adding a very small quantity of 11 lacs+ in Nifty Options of 6100 CE to 6300 CE strike. Overall, 600 is the 50:50 level between the Bulls and the Bears. 6200 is the biggest resistance, with open interest at Nifty Options of 6200 CE already crossing 80 lacs. 5900 and below are the supports as of now.

For tomorrow, immediate resistance for Nifty Spot comes at 5995/600 level. As long as Nifty stays below this level, the intraday trend should be considered negative and Short trades should be preferred. Above this zone, Nifty will again head for its higher level resistances of 6020/6050 and 6075. On the downside, support for Nifty Spot now comes at 5980 level. This is the gap support level, and below this level, Nifty will slide to close the gap towards 5960 and 5940 levels. If it closes below 5940, it will considered a failed breakout.

8 Jan - Nifty Spot resistance at 5995-6020-6050-6075. Support at 5980-5960-5945-5930

 

[NiftyPower]

16 Jan - Nifty View

On Tuesday, Nifty opened flat, and after a few hours of rangebound trading, broke out to make new highs, and close very near to its resistance area of 6050 Spot. If we see last week's movement in Nifty, it declined to close the Gap created on 2nd Jan, and also tested the breakout level of 5945. Thereafter, it closed above 6020 on Monday, and has now closed well above it. Hence, the short term trend remains up. The first signal of this upward momentum waning will be when Nifty gives a close below 6020 Spot. This can now be the stoploss for aggressive trades in Long positions. This is also the level, below which aggressive Shorts can be opened. Although there has not been any significant correction in this upmove, the upward momentum has also been lacking. Also, there is a clear negative divergence on Daily charts. Hence, even in Long positions, it is better not to go all out, and trade carefully. For Short positions, wait for a break and close below 6020. Real downward momentum is expected only when Nifty declines below 5980 and then 5940 levels.

The Nifty Option OI Charts are given below:

On the Nifty Options front, the Bears added a huge quantity of 13 lacs+ open interest at 6000 PE strike. On the other hand, the Bears primarily covered some of their positions from 5900 CE to 6200 CE strike. Overall, there is no 50:50 level right now, as per the Nifty Option charts. 6000 is a minor support, and 6100 is a minor resistance. The major support is at 5900 and major resistance is at 6200, with Open Interest at these strikes crossing 80 lacs+ as of now.

For Wednesday, immediate resistance for Nifty Spot comes at 6050/6055 levels. Staying above this, the Bulls will remain in control, and will take Nifty higher towards its next resistance zone of 6075/6095. Above 6095, 6120 and then 6160/6170 levels can come quickly. on the downside, support for Nifty Spot now comes at 6020 levels. If declines below this, the Bears will press hard for lower level of 6005-5980 and 5960/5940. Below 5940, panic selling is expected.

16 Jan - Nifty Spot resistance at 6055-6075-6095-6120. Support at 6020-6005-5980-5960

 

[NiftyPower]

18 Jan - Nifty View

On Thursday, Nifty opened flat, but rose in intraday trade to close near 6040 levels. On Wednesday Nifty closed below 6020, triggering aggressive positional shorts. These shorts can now keep a Stoploss above today's high near 6055 levels. The breakdown trade as failed on the downside, and the opposite trade can bring swift movement. Hence, it is better to keep a tight stoploss. As long as Nifty trades above 6020 spot, the momentum will lie with the Bulls. If it again falls below that levels, once again aggressive short trades can be taken with same stoploss. But for now, Buy above 6055, Sell below 6020, and trade intraday in between sould be the trading strategy.

The Nifty Option OI Charts are given below:

On The Nifty Options front, the Bulls added a huge quantity of 20 lacs+ in Nifty Option strikes of 5900 PE to 6000 PE. On the other hand, the Bulls did not do any addition, but covered small positions in 6100 CE and above strikes. Overall the picture remains the same in Nifty Option Charts. There is no 50:50 level, 6000 is a minor support and 6100 is a minor resistance. The major support is at 5900 and major resistance is at 6200, with Open Interest at these strikes crossing 80 lacs+ as of now.

For tomorrow, immediate resistance for Nifty Spot now comes at 6050-6055 levels. This is the level where it has been facing resistance for the past two days. Staying above this, the Bulls will take Nifty towards it next resistance zone of 6075-6095. Above 6095, 6120 and then 6160/6170 levels can come quickly. On the downside, support for Nifty Spot now comes at 6020 levels. If declines below this, the Bears will press hard for lower level of 6005-5980 and 5960/5940. Below 5940, panic selling is expected.

18 Jan - Nifty Spot resistance at 6055-6075-6095-6120. Support at 6020-6005-5980-5960

 

[NiftyPower]

7 Feb - Nifty View

On Wednesday, Nifty opened up on positive global cues, but continued the trend and declined to close the gap, and closed near unchanged level 5960. The immediate trend is down as long Nifty Spot is closing below the zone of 6005/6030. The breakout level of 5940 is very near, and the Bulls have done well to save this level multiple times till now. A small gap exists below 5935 level till 5915/5905 level. That should be the first minor stop below 5940/5935. However, a fall and close below 5940/5935 would invalidate the breakout post the consolidation of Nifty between 5840 to 5940 level in the month of December. Such a false breakout usually brings a much faster move in the opposite direction. Hence, Positional traders can initiate/ add to their Short positions below this level, with a Stop and Reverse above this level on closing basis.


The Nifty Option OI Charts are given below:

In Nifty Options, it was a subdued day, with not much addition by either the Bulls and the Bears. The Bears did add a small quantity of 13 lacs+ Open Interest at Nifty Options of 6100 CE and 6200 CE strikes. Overall, 6000 is the clear 50:50 level between the Bulls and the Bears. 5900 and below are the supports, while 6100 and above are the resistances.

For Thursday, immediate resistance for Nifty Spot now comes around 5980/5985 levels. Till the time Nifty Spot stays below this level, intraday traders should look to Sell at resistance levels, or at break of supports, with Stop and Reverse above this zone. Above 5985, the Bulls can take Nifty higher towards 6005 and 6025 levels. On the downside, support for Nifty Spot comes at 5945/4935 levels. As given earlier, a breakdown below this level can take Nifty first towards 5915/5905 levels, and then to much lower levels, as fresh Shorts by traders is expected below this level. Below 5905, immediate target for Nifty Spot will be in 5855/5865 zone.

7 Feb - Nifty Spot resistance at 5985-6005-6025-6055. Support at 5940-5910-5890-5860

 

[NiftyPower]

12 Feb - Nifty View

On Monday, Nifty opened flat, and traded rangebound before closing just near 5900 level. For the second day now, Nifty has closed below the crucial level of 5940. With this, it has entered the choppy zone of 5840 to 5940. Positional traders should continue to hold their short positions, with a Stop and Reverse around 5985/5990 Nifty Spot level. The levels around 5940 are expected to provide first resistance in case of any upmove. The Bulls first have to conquer this level, before any reversal expectations. The Bears have dominated this month so far, as is seen on Daily Charts, where the Close is lower than the open on most days. However, they have failed to do much damage in terms of percentage drop. Nifty is right now at a crucial juncture, and traders should be on their toes, without being biased. Bearish Pressure is seen on the charts, and if the Bulls fail to conquer the crucial levels, then a significant correction can start from here.

The Nifty Option OI Charts are given below:

There wasn't much action in Nifty Options on Monday. Overall, the level of 6000, which was a 50:50 level a few days ago, has now become a minor resistance level. The Bulls are still holding on to their positions at Nifty Options of 5900 PE and below strikes. There is no clear 50:50 level as of now, as per the Nifty Options Charts. 5900 and below are the supports, while 6000 and above are the resistances.

For Tuesday, immediate resistance for Nifty Spot comes at 5905/5910 levels. Staying above this, the Bulls will again try and test the resistance levels of 5935/5945, where they are expected to face stiff resistance. Till Nifty Spot keeps below these levels, the bias will be negative, and intraday Short trades should be preferred. Above these levels, till 5990, choppy trade is expected. On the downside, support for Nifty Spot comes at 5890 level. Below this, lies the strong support zone of 5860/5840, which Nifty had held throughout the month of December.

12 Feb - Nifty Spot resistance at 5910-5940-5960-5985. Support at 5890-5860-5840-5795

 

[NiftyPower]

15 Feb - Nifty View

On Thursday, Nifty opened flat, tried to move up in intraday trade, but met with resistance exactly near the previous breakout level of 5940, and then declined to close below 5900 level. As given in previous Nifty View, the trend remains down and Positional traders should remain short as long as Nifty Spot is closing below 5940 level. We will consider the trend to turn up only when the Bulls manage to take out the resistance zone of 5980/5990. However, to lock in some profits, aggressive traders can shift their stoploss to 5940 Nifty Spot level. Nifty remains as Sell on Rallies till then, even though the oscillators are reaching oversold levels on Daily charts. The immediate logical support below 5890 comes at 5860/5840 zone, from where it has bounced on previous occasions. A break of these levels will bring in a much larger correction in Nifty.

The Nifty Option OI Charts are given below:

On the Nifty Options front, the Bears added a good amount of open interest at Nifty Option strikes of 5900 CE to 6100 CE. On the other hand, the Bulls hardly did anything. Overall, looking at the Option Charts, the Bulls seem to believe that the level of 5900 will hold, and Nifty should bounce back from here. This is indicated from the highest open interest at 5900 PE strike. The level of 6000 can be considered a minor resistance for now, while 6100 and above are major resistances for this month.

For Friday, immediate resistance for Nifty Spot comes at 5905/5910 level. Above this, the zone of 5930/5940 will prove to be a major resistance area for Nifty. If the Bulls manage to take it out again, then they can push for a short covering rally till 5980/5990 levels. On the downside, supports for Nifty Spot comes 5890, and then at 5860/5840 levels. Below 5840, the Bulls will start to panic.

15 Feb - Nifty Spot resistance at 5905-5935-5960-5985. Support at 5890-5860-5840-5820

 

[NiftyPower]

25 Feb - Nifty View

On Friday, Nifty opened down near its support of 5840, made an intraday recovery till around 5870 level, before sliding again to close near 5850 level. The trend remains down, and Positional traders should remain short and use the rises to Sell Nifty, till it is able to give a close above 5940/5950 level. Nifty had a Gap down opening on 21st Feb, and the minimum the Bulls need to change the trend is to fill this gap initially. The Gap resistance comes around 5920 level. Before that happens, immediate resistance for Nifty Spot comes at 5880 and 5905 levels. A close above 5880 will be the first indication of a Pause in this downward move. A close above 5920/5950 would indicate a short term trend change. On the other hand, a close below 5840 and 5820 can bring the much needed momentum for the Bears. Keep all these levels handy, as the budget week can bring a lot of wild moves in Nifty, and traders will have to be swift and plan their trades in advance. Safe traders can trade on intraday basis only with strict stoplosses.

The Nifty Option OI Charts are given below:

On the Nifty Options front, there was hardly any addition by the Bears on Friday. However, the Bulls added a good amount of 11 lacs+ OI at lower level Nifty Option of 5700 PE. The Bulls also covered a good amount of 6 lacs+ Open Interest in Nifty Option of 5900 PE. Overall, 5900 remains the 50:50 level for this series, with a slight advantage to the Bears at this moment. The support at 5800 has weakened, but it still remains the biggest support of this series. 6000 is a major resistance now, with Open Interest at 6000 CE Nifty Option crossing the 1 Crore mark.

For Monday, immediate resistance for Nifty Spot comes around 5880 level. Any rise upto this level can be used to build short positions by intraday traders. However, if Nifty sustains above this level, then the Bulls can take it to its next resistance level of 5900 and 5920. On the downside, Support for Nifty Spot comes around 5840 levels. Below this, the next strong support area for Nifty Spot is around 5820 level. Below these levels, the much needed downward momentum can come, which will take Nifty towards 5795 and 5760 levels.

25 Feb - Nifty Spot resistance at 5880-5900-5920-5940. Support at 5840-5820-5795-5760