Sunday, February 21, 2010

Entering into the expiry zone...Bulls and bears equally poised?!



Last session witnessed strong intraday volatility and in the end, the week ended on an almost doji note with both the bulls and bears not able to close the markets in their favour.

Though bears were able to push the markets below the indicated level of 4823, it was more of short lived and bulls were able to charge back, but not to the extent of triggering the next round of squeeze and the markets finally settled the week on a neutral note at 4845.

The weekly charts are indicating some bullishness and also a move towards 4985, 5035 levels.
On the other hand, Nifty has been struggling to move past the crucial resistance level of 4930 and bears are trying to pull it down at every opportunity as mentioned in


With the implied volatility of both put and call ruling at almost 30 and the PCR near 1 (volume PCR is 0.94 and open interest PCR at 1.03) for the February series, the current stance is that both bulls and bears are equally poised for this expiry and any move on one side could be nullified by an equally opposite move on the other side in the subsequent session.

The levels to watchout for the week are


Resistance levels : 4930, 4985, 5035

Support levels : 4805, 4768, 4717


-
Happy Trading
www.tripleint.com

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