Wednesday, June 16, 2010

A deciding day for further short term trend...


Markets were hovering around 5200 levels yesterday and after testing the crucial support of 5170, bulls charged to push markets to a close above 5200 levels after more than a month's time.

Options data saw accumulation in 5200, 5100 puts as well as in 5300 puts. The PCR ratio of 1.41 is highly favoring bulls at this point, though the accumulation in 5300 calls might be a deterrent for the bull run.

How to trade?
A close watch is required on 5300 puts and if the open interest increases heavily when Nifty is testing 5245 levels during the day, then there is quite a possibility of a bullish move towards 5285 levels. Initiating shorts is not recommended.

Resistance levels : 5245, 5262, 5285

Support levels : 5203, 5185, 5170



-Happy Trading

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