Yesterday market was confined to a tight range after a good start and closed slightly above its previous close at 5440 with a gain of 8 points.
Options data saw an increase in the open interest in 5400 puts of over 10 lakhs and PCR of index options is now at 1.19. The implied volatility of calls is much lesser at 13 when compared to the near strike puts at 19. Most of the data is indicating there might be still steam to the bull rally but the open interest in 5500 and 5600 calls will be a deterrent and that places bears equally well.
How to trade?
A clear view is not yet getting established and it is better to stay on the sidelines and wait for the market to make the next move before initiating any trade.
Resistance levels : 5447, 5462, 5486
Support levels : 5422, 5388, 5369
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