Nifty staged a remarkable recovery by undoing the fall we had day before yesterday, but now its back near that 4550-4600 area where it has struggled for last few days. The resistance of 4650 is a strong one and most probably will be taken out by a gap up.
Coming to the OI picture 4600 calls have shed OI but continue to have more open positions than their corresponding Puts indicating resistance at 4600-4650 levels.4500 puts also have open positions , but the significance of 4500 is not much as we continue to move up and down through the 4500 mark.
In nifty futures there is a decrease in OI indicating that in yesterday’s recovery there was short covering rather than additions of long positions.
So longs are safe above after a close above 4650 or as near as possible to vital support of 4365 (the same being the stop loss).
Keep an eye on RIL a close above 2350 will turn out to be bullish for the stock and nifty itself. As it has a good resistance at that levels.
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