Tuesday, June 22, 2010

A strong correction towards the end of the session today ...


Right from the beginning of the session yesterday, bulls took complete control and pushed markets beyond the immediate resistance of 5331 levels which was another target for longs.

Options saw hectic activity with the turnover in 5400 call exceeding 10000 crores and 5300 puts around the same with more than 50% increase in OI. There was unwinding seen in 5300 call and overall the data is pointing to an expiry of above 5300 levels for thursday.

How to trade ?

Today there might be an attempt to scale new highs and a strong correction towards the end of the session. It is better to initiate shorts on new highs and on reaching 5406 levels with a target of 5320.

Resistance levels : 5366, 5385, 5406

Support levels : 5331, 5320, 5302



-Happy Trading

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