NIFTY SPOT LEVELS FOR TODAY'S TRADING
SUPPORTS
4450 - The Pivotal level for today, above which bull's strength-show continues. Also, the previous HL, where an attempt can be made to go long, if global conditions are also favourable.
4430 - An important HL support, below which bears will get ready.
4400 - The psychological support / also S1 for today. Good level to go long with SL below 4385. If this also breaks, then bears will gain more strength
4375
4350 - The previous gap resistance should provide support today. S2 is 4330
RESISTANCES
4500 - even yesterday, SPOT was facing difficulty in crossing this milestone
4515 - THIS IS THE PEAK OF 20 JUNE, the day on which dbl-digit inflation was first announced, and SPOT fell like a stone after that. Also, multiple resistance level of day before - 19 june.
Crossing this level will be moral-boosting for bulls. This is R1 for today.
But, one may attempt short here with SL above 4535.. Daily/Hourly RSI, all indicating over-bought conditions.
4535 - crossing this would result in more covering of shorts.
4570 - The gap resistance band 4535-4580 the R2 for today. For me, full stop for today's bulls...
SPOT is over-bought, no doubt abt that. SPOT, though being in an uptrend, is nearing an important downward sloping line, drawn from peak of JAN 08. Take care with long positions, though personally I dont expect any big correction as of now. Below the gap support of 4350-15, 4240 is an important support.
So, atleast till this expiry, 4000 is history (unless very negative news come out). Those expecting some cooling/correction should buy near ATM PUTs like 4500 and 4400. Options are depreciating assets over time. 4300 PUT means you expect SPOT to close below 4300 (gap resistance-support) on expiry (6 days to go)
