Nifty future closed at 5059.40 (+0.60%) and negative open interest decreased by -1.92%. Nifty 5000 put added highest number 1022100 shares in open interest and 5000 call open interest decreased by -301300 shares from open interest. Nifty 5100 put added 325700 shares in OI and 5100 call added 70350 shares in OI. Nifty future up by 0.60% and negative open interest decreased by 1.92%, indicates that huge shorts have been covered by smart money. But still there are lots of shorts open in the market. I told You in my previous post that if Nifty come around 5000-4990 there will be buying opportunity. As per option data indicates that bulls are in mood. Now Lets consider charts. As per daily and weekly charts nifty is on the trend line resistance. 200 DMA at 5066 and 50 DMA at 5090 will act as a resistance.Need to be cautious here market may be reverse from here because it is touching upper trend line. It may come down again near Friday's low 4995 to confuse the retails investors. Best strategy would be that don't trade this thirty point range 5060-5090. Let the market decide here don't take tension. TENSION DENE KA LENE KA NAHI. If market close above 5090 one may go long for the target of 5140. But I highly expect that market should close one or two days in mild red and it would be good for bulls health. Below on daily charts Nifty has taken 5 times resistance and return back. On weekly charts there is also a 16 week trend line resistance.Slow stochastic on weekly charts improving up sides and it is ready to give vitamin to bulls. Further wait and watch strategy will be good for small players. Every day is not a trading day. Aggressive trader may (1).short Nifty future below 5027 for the target of 4995. OR (2) Short nifty future If it go around 5090 stoploss 5105 on the same day closing basis target 4995 holding period 2 days, don't keep long if nifty spot try to close above 5090.Any close above 5090 may blast nifty. Buy nifty above 5095 stoploss 5070 target 5140.
WARNING:- above given call is risky and it is only for aggressive traders. Safe players wait and watch.
