On the first day of the week, markets had a gap up and reached the ceiling of 5333 levels mentioned in the weekly post. There is also a key bear trap seen at 5285 levels.
Options data saw relatively higher accumulation both in 5200 puts and 5300 puts with a PCR of 1.29 and pattern-wise, on the charts we see a bullish engulfing pattern. All these factors favour bulls at this stage, though the up move could come after a week's consolidation before markets could reach the monthly target of 5462 levels.
How to trade?
Market is already at the upper ceiling and though factors favour bulls at this stage, it is better to wait and watch for a few sessions before initiating any trade.
Resistance levels : 5364, 5385
Support levels : 5302, 5285
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