Monday, July 5, 2010

Weekly update: A bullish move in the later part of the week...


What the markets did last week ?

Last week markets closed again on a neutral note testing the range high of 5333 levels mentioned earlier, on the upperside and managed to trade above 5200 levels throughout without testing the key level of 5191. Markets closed the week at 5237.

What does the options data indicate ?

Last week saw steady increase in 5200 puts and towards the end there were accumulation seen in 5300 puts which increased in OI by around 10 lakhs on friday. This points to a bullish move in this week and might come in at a later part of the week.

What can be expected this week ?

After the pattern of a grave-stone doji the earlier week, last week also saw an almost similar pattern with consolidation. Markets could test further support level of 5191 and a momentary test of 5150 levels. It is likely that markets will continue the upward journey in the month towards 5462.

How to trade for the week?

This week it is better to initiate long positions on a test of 5191, 5150 levels with a target of 5369.

Weekly resistance levels : 5278, 5333, 5369

Weekly support levels : 5210, 5191, 5150


-Happy Trading

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