On tuesday, where it was written markets will make a move to determine the short term trend, bears took complete control and pushed markets to a sub 6000 close for the first time in this series.
Yesterday markets saw testing further lower support of 5907 and then bounce back towards 6000 levels.
Options data saw unwinding in 6000 and higher strike puts and strong increase in OI of 5900 puts. There were also some increase seen in 5900 call and 6200 calls.
Overall due to the increase seen in 5900 puts, there is a perceived view that markets will get strong support at that level. It is likely that markets will break 5900 support before the close of this series and bears might push markets further low to levels of 5826. The implied volatility in puts in very less when compared to the calls and this could be one reason for bears to push markets lower breaking support levels.
Resistance levels : 6031, 6076, 6101
Support levels : 5957, 5905, 5885
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