NIFTY WEEKLY

NIFTY WEEKLY
CHART VIEW:-
The nifty has taken support exactly at 20 week MA which also means it has taken support at the Bollinger bad average which usually acts as strong support. Now the resistance lie at 4880 which is the 50DMA and then above it at 4930-4936 which earlier was a strong support. This week the nifty formed a candle with a large lower shadow which shows short covering as well as buying at the support levels of 4550-4500. Below 4485 the next support is at 4353 and hence a close below 4485 will be bad for the nifty
NIFTY OI DATA
1> 4900 CE has more than 40 lac of OI which validates the resistance at 4880 and then at 4930
2> 4700 PE has OI of more than 46lac and 4600 PE has OI of more than 58lac which indicates strong support at these levels.
3> The Nifty futures OI show decrease as they approach either resistance or support which shows that traders are closing out their positions at crucial levels. This indicates that nifty may remain range bound between a wide range of 4600-4900 in coming days.

So it would be better to avoid shorting if nifty closes above 4930 and also would be better to avoid long below 4700 or 4600
Above 4930 nifty can test 5012 and below 4700 nifty can fall upto 4600-4550 and a close below 4550 will most probably take nifty to 4353