NIFTY VIEW

Nifty daily chart
Fridays candle had a long upper shadow which showed selling at higher levels that too with good volumes and now nifty has resistance in the 5050-5080 regions. The trend line which was supporting nifty till now was broken on Friday but as the nifty is near its 20 day low of 4905 more decline is needed to be sure of a breakdown in the nifty.
There is confluence of supports at 4920-4891 region
1> The 4900 put has more than 50 lac open positions
2> The lower Bollinger band is at 4920
3> The lower Keltner channel is at 4959
4> The 34 DMA is at 4920
5> The 23.6% retracement of low of 4353 to recent high is at 4982 where nifty took support on Friday
So the region of 5000 to 4900 is a strong support region and a break of which will lead nifty to 4800-4750
NIFTY OI DATA
1> 5100 CE has over 55 lac open positions which indicates expiry to be under 5100 so avoid buying 5100 CE in hopes of nifty going past 5100
2> 4900 PE has shown huge unwinding of positions which indicates put writers closing out there positions, however 4900 put has OI of over 50 lacs hence good support is there at 4900 which means expiry could be above 4900 so avoid buying 4900 put
NIFTY VOLUME DATA
1> Average volumes in nifty 50 cash stocks was higher than last week this along with a declining in nifty is not good for the bulls
2> The average volumes on advancing stocks were 43% which points indicates a b it of weakness in the nifty.
3> The average volumes on declining stocks were 57% which is significantly more than the one in advancing stocks indicating unwinding of delivery positions in the front line stocks like LT RIL GRASIM

People interested in buying a dip towards 4920-4905 can do so with a strict SL of 4891 for a target of 5000 to 5050