Wednesday, December 1, 2010

Markets to consolidate for a while before the next move...


Markets saw the strong up move towards the last resistance level of 5895 levels yesterday as mentioned in the previous post http://tinyurl.com/33fr9qx and right now it looks like more of consolidation around the levels of 5835 for a while before any strong trend move.

There were widespread increase seen in open interest in all the near strike puts and calls and this is more of an indication for consolidation at this stage. The PCR ratio is at 0.82 which is favouring bears. As of now markets after consolidation, there might be another bearish move.

5937 level should offer a strong resistance going forward.

Resistance levels : 5895, 5905, 5937

Support levels : 5850, 5835, 5789


-Happy Trading

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