Thursday, September 2, 2010

Strong bounce continues with added short cover ...


Yesterday markets after trapping the bulls at 5420 levels, raced ahead towards the end of the session, kicking in short covering and closed the day on a strong note at 5472 levels, above its 20 DMA of 5459.

Options data continued to see huge build up in 5400 puts which crossed the 1 crore mark very early in the series. Call side also saw an increase in 5500, 5600 and 5700 calls.

Markets have opened on a strong note and tested 5500 levels for the day. There might be consolidation around this level for some time before markets make the next move.

Resistance levels : 5485, 5509, 5523

Support levels : 5445, 5430, 5418


-Happy Trading

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