Yesterday was a doji day in the charts and markets closed exactly at where it opened after testing 5250 levels.
On the charts, the 20 DMA has been touched after nearly a month and pattern-wise this should give more strength to the markets to stage a new rally to the target of 5462 levels.
Options data is indicating a tighter range and since the OI in 5200 calls is less, markets likely to give a strong bounce on any move below 5200 levels. This is also indicated by the fact that 5300 put is seeing some writing.
How to trade?
The view remains the same and markets can give a strong bounce on further testing of support levels. A buy on testing further support levels of 5191 levels is recommended.
Resistance levels : 5250, 5265, 5281
Support levels : 5220, 5202, 5191
-Happy Trading
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