Monday, October 12, 2009

Bulls and bears equally poised...Wait and watch for now ?!


Bears had a strong hold on Nifty on friday and pushed it to close lower than the 20 DMA which is at 4957.

The put call ratio has turned to 1.05, showing an equal balance between the bulls and bears. There has been increased accumulation in near strike calls and a decrease in the open interest on the near strike puts, indicating now that this market can see some lower levels before giving a bounce.

In any case a break and close of 4900 levels at this levels would impart strong bearishness and would push Nifty to test 4806 levels.
As of now, it is a wait and watch situation and the best thing to do is to stay out of the markets for a while.

Resistance levels : 4964, 4985, 5006

Support levels : 4921, 4895



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Happy Trading
www.tripleint.com

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