Tuesday, July 13, 2010

A test of new high and a consolidation


Nifty touched the 5400 barrier yesterday and could not sustain to that level and finally closed the day at a strong level of 5383.

Options data saw huge accumulation both in 5300 puts and 5500 calls and unwinding in 5400 call.
This points to a bullish move towards new high for the day and since 5500 call accumulation is heavy, it looks like the move may not be sustained.

How to trade?

Stay in long at each support level for a target of 5442.

Resistance levels : 5406, 5420, 5442

Support levels : 5375, 5361, 5350


-Happy Trading

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