Thursday, December 30, 2010

Bears to push markets near 6000 levels in the later half of the session on expiry day









Markets after hovering in a tight range, gave a strong up move in the penultimate session of the december series and closed at 6060 levels after nearly testing the series high of 6069 levels.

Option data saw very huge increase in open interest in 6000 puts and also huge unwinding in 6000 call to the tune of 19 lakhs and 15 lakhs and this is giving a notion that market might not test lower levels of 6000 for the series and possibly could reach higher levels.

Looking at the overall series, there were quite a few indications of range bound moves with Nifty hovering in the levels of 5950 to 6035 levels and it is likely for markets to fall back into range in the day of expiry and go for a close very near to 6000 levels, even breaking that level momentarily in the later half of trade before settling near 6005 levels.

Resistance levels : 6069, 6085

Support levels : 6034, 6005, 5991



-Happy Trading

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