Yesterday markets were able to rise strongly from the crucial support level of 5050 and in the process, there were also powerful bear traps seen around 5067 and 5098 levels. Looking at the intraday chart and the overall pattern it is likely that markets can stage a strong rally from this level.
Given the fact that 5067 is the powerful trap point any move below that today will bring in extreme bearishness.
4900 puts saw an accumulation of around 30 Lakh contracts which is a very huge number for a single day and 5100 call also saw an increase in OI of about 15 lakhs. Any move below 5050 would then point to the fact that markets are moving down to test 4900 level in the near term. Similarly a move beyond 5187 would bring back the bullishness and will push Nifty to 5250 levels. It might be a crucial trading session to decide on the shorter term trend.
Resistance levels : 5150, 5187, 5204
Support levels : 5098, 5068, 5050
-Happy Trading
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