Monday, March 15, 2010

An action packed week after a very tight consolidation ...


Last week saw markets consolidate in a very tight range, almost between 5100 and 5150 levels.

The historical volatility has again dipped to two year lows and markets have come to a point where there has to be a strong move in any one direction in this week.

Given the fact that 5000 put has the highest open interest and is at 1.2 crores and if the puts have been written earlier, there is less likely chance of markets to see a huge correction at this stage. On the other hand in the past session, there has been increase in the open interest of 5100, 5200 as well as 5300 calls and looking at all indicators, it could well be a case of accumulation by strong hands and markets likely to see higher levels also in this week.

A strong bull trap is seen around 5150 levels in the intraday charts on friday and going forward any move to nullify this, i.e a move beyond 5150 levels would favour bulls to a good extent and markets can move on to test 5175, 5206 levels immediately.

The levels to watchout for the week - Resistance levels : 5206, 5245, 5311 and
Support levels : 5092, 5038, 5011.

The intraday levels for today are

Resistance levels : 5150, 5175, 5206

Support levels : 5130, 5112, 5085


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Happy Trading
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