Monday, November 23, 2009

Bears completely trapped... Bulls to control the expiry and Nifty all set to move higher?!


Friday, it finally proved that the buy on dips strategy worked out well. The intraday pattern suggests that bears have been completely trapped and it is bulls who will decide this expiry move.

Now that the weak bulls have been thrown out of the system and also new shorts have been built, it is possible that during this week, markets can move up without much of retracement also and it is also possible to test the high of 5182 in the remaining four days triggered by short squeeze.

The PCR has come down to 1.10 and though this is neutral, there has been a wide spread activity in 5100 call on friday. FII data analysis seems mixed. They have been net sellers both in the equity as well as index futures on friday and have largely accumulated options worth around Rs. 800 crores. 

Overall it looks like an expiry controlled by bulls and we should wait for a couple of more sessions to ascertain on the call strike which would expiry in the money.

Resistance levels : 5079, 5111, 5127 

Support levels : 5045, 5024, 5007  



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Happy Trading
www.tripleint.com

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