Sunday, October 24, 2010

Bears to gain control initially during the expiry week ...


Nifty started on a week note last week and was trading below the 20 DMA for major part of the week. It closed the week on a neutral note at 6066.

The sharp recovery which was seen on Monday as well as Thursday has given a false bullish undertone and with premium ruling around 40 pts plus throughout the month has also strengthened the view for the bulls.

On friday, both 6100 calls and 6200 calls saw hefty activity with large accumulation of over 11 lakhs and 12 lakhs and 6200 call is having the highest OI for the month. On the other hand not much of activity was seen on the put side.

Overall it looks like bears might be able to push markets below 6000 mark and might even be able to break the 5962 barrier and go for a test of 5885 levels momentarily during the expiry week before Nifty can recover and trade closer to 6000 levels. 6125 has been established as a strong resistance and it is not expected for markets to move above that for this series.

Resistance levels : 6071, 6095, 6125

Support levels : 6008, 5962, 5885


-Happy Trading

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