Monday, February 15, 2010

First weekly gain in four weeks. Can it sustain ?!

The last session in the previous week completely saw bulls gaining strength and throughout the session, markets were trading above the 4800 level.

This has given enough confidence to the bulls, combined with the increase in open interest on the near strike puts and unwinding seen in the near strike calls.

Pattern-wise markets are still very much under the control of bears and at this juncture any break of 4800 levels on the downside will trigger a fresh round of selling and can push markets towards the near term goal of 4590.

On the upperside, clearly 4930 is being established as a strong resistance level and if at all the upmove happens beyond 4885 levels, bears are likely to takeover again strongly from 4930 levels.

Resistance levels : 4845, 4865, 4885

Support levels : 4803, 4776, 4737

Happy Trading

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