Wednesday, October 28, 2009

Bears proved their strength..4900 broken decisively..What next for expiry ?!


Bears completely conquered the 4900 fort and also showed immense strength to break it and close below that level.
The close is also below the lower bollinger band and there has been a significant increase in volume.
On the intraday charts there are multiple instances of bull traps at each key levels, 4955 and also just above 4900.
For this series, the OI in 4900 puts were ruling very high at some stage and now that it has been decisively broken, as written before, it is a proof that the puts have moved from weak hands to strong hands. Even an expiry above 4900 looks remote at this stage.
The overall PCR has come down to 1.02, though neutral, but the way it has decreased as the market came down favours bears.

Resistance levels : 4868, 4896

Support levels : 4808, 4785






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Happy Trading
www.tripleint.com

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