Monday, August 9, 2010

Weekly Update: Markets still confined in a tight range...




What the markets did last week ?
Markets almost gained what was lost the previous week and Nifty managed to close the week at 5439.

What does the options data indicate ?

Options data is again pointing to a neutral move with both 5300 puts crossing a crore in open interest and 5400 puts, 5500 calls and 5600 calls above 80 lakhs. Looking at the overall open interest, it looks like a range breakout is not going to happen too soon with the put call ratio also being neutral at 1.03.

What can be expected this week ?

Any move on one side is likely to be neutralized by a move on the other side and markets might be confined between a range of 5327 to 5523 levels. 5523 is a crucial level and markets can make an attempt to test that this week.

How to trade for the week?

It is better to trade the range with a buy at support levels and a sell at resistance levels for the week.

Weekly resistance levels : 5447, 5496, 5523

Weekly support levels : 5401, 5368, 5327


-Happy Trading

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