Contrary to the view yesterday, when markets opened gap up above the previous session high where bulls were in upperhand, it became a strong turning point day in which bears completely dominated the markets.
5332 level mentioned yesterday proved to be a point where there is also a strong bull trap seen before markets were brought down.
The build up in 5300 put and 5400 call, being huge was suggesting a larger range for the markets from 5285 to 5406 with wild swings during intraday. The 20 DMA currently is at 5286 levels which bears have conquered yesterday.
Large unwinding is seen in 5300 puts which became 'in the money' after 8 sessions which is pointing to some more downside. It is better to wait and watch for two more sessions before concluding on the short term trend.
Resistance levels : 5286, 5306, 5332
Support levels : 5249, 5225, 5206
Happy Trading
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