Monday, July 12, 2010

Weekly Update: Bulls to push markets further up towards monthly target...













What the markets did last week ?


Last week markets closed on a strong note as indicated in the weekly post and the major bullish move came towards the later part of the week. Nifty closed the week at 5352, the highest weekly close in nearly three months.

What does the options data indicate ?

Options data is mixed with strong accumulation seen in 5500 calls as well as the open interest is ruling high in the near strike puts of 5200. Towards the end the week writing was seen in 5400 puts as well and this indicates the bullish undercurrent set in the previous week could push the market towards the monthly target of 5462 levels.

What can be expected this week ?

After a strong consolidation, bulls are back in the attack and this week could see more on the upside, but since the accumulation is heavy in the near strike calls, there might be a pull back or a minor correction, before bulls can push markets to higher levels.

How to trade for the week?

This week again it is better to initiate long positions if market drops below 5300 levels for a target of 5442.

Weekly resistance levels : 5385, 5406, 5442

Weekly support levels : 5327, 5297, 5271


-Happy Trading

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