NIFTY THIS WEEK

Nifty chart view
Nifty has been slithering along the trend line as shown in the chart also the 26 DMA is at the trend line so the support at 4900-4891 becomes all the more important. The resistances are at 5044 (2 day swing) and then at 5144 (trend line drawn on weekly chart).
NIFTY OI DATA
4900 puts have a massive OI of 62lacs which indicate strong support at 4900 levels similarly 4800 and 4700 puts also have good amount of open positions indicating support at all lower levels.
5000 calls now have OI above 47lacs and at the same time 5000 puts have shed OI which indicates strong resistance at 5044 levels and that nifty will find it difficult to close above 5000, same is the case with 5100 calls.
Above data indicates the range is very narrow between 4900-5040 which is bound to frustrate traders
NIFTY 50 VOLUME DATA
1> Volumes on advancing stocks in the week was 48.5 % of the total volume which is greater than last week’s
2> Volumes on declining stocks in the week was 51.5 of the total volume which is marginally less than that of last week
3> The total volume traded in nifty 50 cash was 54K Cr which is also greater than last weeks
Best thing according to me is to avoid shorting and to maintaining longs with SL either at 4891 or at a close below 4796 as per one’s risk capacity. I also think that nifty will take support in this region of 4900 to bounce back, the reasons for this view being
1> RIL being at its gap support of 2090
2> Infyy being close to its bear flag target of 2160-2150
3> Chances of SBI bouncing back

BTW had clearly mentioned bearish view of INFYY in last weeks post when the stock was at 2300 and had said below 2220 the stock can test 2160