Tuesday, September 21, 2010

Weekly Update: Markets reaching all extrapolated target levels





Nifty raced past last week's target of 5942 and made an attempt to scale 6000 peak.

The key level to watch out based on weekly charts is 6014 and Nifty might be able to scale it before consolidating in a tight range for this series.

A move beyond 6014 could trigger the final leg of strong momemtum buying along with short squeeze at this stage.

Options data is still seeing strong unwinding in all the near strike calls and 5900 and 6000 puts adding on to open interest.

It is not expected for the markets to correct below 5885 for this series.

Weekly resistance levels : 5990, 6014, 6042

Weekly support levels : 5942, 5902, 5885








-Happy Trading

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