nifty

nifty, originally uploaded by sdeesai.

Nifty
Nifty powering from strength to strength. Now it’s on its way to touch its recent highs of 5310 and also has given a positive breakout on the twigs money flow. There is an important and strong resistance at 5320 above which nifty will fire. The supports are at 5200 which is now a strong support area and below it crucial support at 5100.
Nifty OI data
5200 puts have shown OI of 40 lacs which mean 5200 is a strong support zone, at the same time 5300 calls have shown OI of 37 lacs which means for the time being nifty can find it a bit difficult to go past 5320, so it may try to spend some time in the 5240-5300 zone and then try an up move past the 5300 mark.
One thing that warrants caution is the relative underperformance of nifty with respect to DOW JONES
Dow has broken past its earlier high while nifty and other emerging markets haven’t, sustained underperformance WRT to dow can be bad for the upward momentum and hence sooner the breakout happens the better otherwise it will be time to turn cautious in nifty.