Friday, July 30, 2010

Beginning of a new series after an expiry close to 5400 levels...


The end of july series came yesterday with Nifty closing a shade above 5400 levels after getting confined to the close resistance and support levels as mentioned in the post.

Now that a new series has begun with a very low historical volatility and also a low implied volatility, the immediate reaction is to look for expansion of volatility for the month. Though this may not happen immediately, there is a possibility of this to happen eventually and would require a closer watch.

How to trade?

Markets can also consolidate between the tight range for a while before making the next move and till there is any sign of a confirmed breakout, it is better to play the range.

Resistance levels : 5422, 5445, 5462

Support levels : 5381, 5369, 5334



-Happy Trading

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