Thursday, July 22, 2010

Market to fall back into range again...


Markets keep oscillating in a tight range and yesterday also markets tested a high of 5410 and closed a shade below 5400 levels.

Options data saw huge increase in open interest in 5500 calls and 5400 calls as well as in 5400 puts. There was unwinding seen in 5300 puts. This points to an initial bearish move for the day, but then a bounce back is expected again in short term back to the levels of 5400.


How to trade?

There might be weakness and a retest of 5350 levels is possible for the day. It is a buy around 5350 levels and a sell on a move above 5400 levels at the moment.

Resistance levels : 5405, 5420, 5442

Support levels : 5386, 5361, 5350


-Happy Trading

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