Monday, March 8, 2010

Bulls positioned strong...A move till 5186 triggering short squeeze...


On friday, Nifty took strong support at the first mentioned level of 5070 and closed just its previous day's close.

Again to reiterate the point of a strong bullish move ahead, the short covering has not happened and retails have not yet participated fully in this rally and are waiting on the sidelines for markets to correct to enter and have been selling at this juncture.

5100 call added around 13 lakhs in open interest and a gap up will suggest that there had been strong buying in that when markets dropped below 5100 levels sharply on friday.

The weekly resistance levels are 5150, 5186 and 5254 and the support levels are 5050, 5012, 4959. Market is not likely to fall below 5050 without triggering a powerful short squeeze at this juncture.

The near term strong resistance is seen around 5186 and is likely that bulls could push markets to that level.

The levels to watch out for the day

Resistance levels : 5105, 5130, 5150

Support levels : 5070, 5050, 5032


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Happy Trading
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