Wednesday, June 9, 2010

Range bound around 5000 levels for a correction later...


Markets yesterday almost tested the crucial support level of 4965 from a high of 5071.

Yesterday's range was mentioned as 4965 - 5085 and shorts were suggested at range high and long at the support.

Option data is indicating that markets remain in range for sometime, as accumulation is seen in 5000 calls as well as 5000 puts with some increase in 4900 call also suggesting a correction towards the end of the session as seen yesterday.

Overall any break of 4965 levels would push markets to test 4830 levels in the short term.

How to trade?

Shorts are to be initiated only on a break below 4965 levels.

Resistance levels : 5010, 5037, 5050

Support levels : 4985, 4965, 4934


-Happy Trading

No comments: