Wednesday, July 14, 2010

Bullish day to reach the monthly target...


Markets were swinging for most of the morning session yesterday and towards the afternoon, bulls pushed markets strongly for a close above 5400 levels.

Options data saw unwinding in all in the money call strikes and heavy writing was seen in 5400 puts towards the end of the session. With the PCR reaching 1.24, all this points to a bullish move towards our monthly target of 5462.

Since accumulation is quite heavy in 5500 call, 5462 could also act as a strong ceiling and markets might not be able to break that barrier easily.

How to trade?

Remain in long for the monthly target of 5462. It is better to wait to watch for sometime for markets to take action once the target is reached.

Resistance levels : 5420, 5442, 5462

Support levels : 5380, 5361, 5350

-Happy Trading

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