Most of the days in July has been ended in sideways fashion for Nifty especially between the 5EMA(High) and 5 EMA(low) line. Almost all the Out of the money calls and puts expires worthless. As there is a popular saying that “Most of the time the movement of market’s direction will cause maximum pain to maximum people”. Its really a tug of war between both the bulls and bears. As both the bulls and bears had relatively exhibiting equal strength,the rope will stay pretty much in the same place. And the resulting force is zero and there is relatively no change in motion either of the direction. which would really irritated -both the bulls and bears.

As of now The daily chart of nifty is in buying mode for more than a month and currently the hourly signals are pretty weak. Also the Open Interest data for Nifty paints a bearish signals due to high open Interest figures in 5500CE and 5600CE Aug Series. Which strongly symbols that Bearish Call writers are confident of the Capping 5600 atleast for August series. Which relatively speaks that bullish operators are not enough confident on the upside for time being.

What is the minimum requirement for the bullishness to continue?

For time being nifty is trading below the weekly 5 EMA high level(5421) which is also the ichimoku hourly resistance range. But even if bulls are manage to cross 5421 on EOD basis the overall outlook for this august season could once again remains sideways as Huge open interest built up near 5500 CE and 5600CE guards the upward movement of the nifty.

Related Readings and Observations

• NMA Chart Update
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• Nifty hourly trading for 20 August 2010
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• Nifty maintains the hourly sell signal for 19 August 2010
  Nifty maintains the hourly sell signal with resistance place at 5435 zone. And also spot nifty is holding the GANN Support zone 5410-5415 zone. As of now nifty nears the make or break kind of situation which could be confirmed after crossing the 5410...
• Nifty hourly trading for 17 August 2010
  Chart shows that Nifty hourly mode @ GANN Supports zone 5417-5410. Breakdown below the support zone will target the next support zone 5200...
• Nifty hourly trading for 13 Aug 2010
  Nifty hourly resistance still near 5466 zone and continuing the sell mode. Also in yesterdays action it nears the first GANN Support zone 5375-5370 region. As the GANN Supports are in increasing mode the current supports zone has increased to 5380 zo...