Monday, December 20, 2010

Nifty struggling to set direction for this series...















Yesterday Nifty made a high of 5985, a seven session high, but could not sustain to that level and corrected to close at 5947, inline with the previous close. The levels were mentioned in http://tripleint.blogspot.com/2010/12/pause-before-resuming-upward-journey.html

There has been a consolidation of more than a week around the 20 DMA of 5900 levels. Option data saw an increase of more than 10Lakh in open interest in 5900 puts, but the outstanding is less in that when compared to other strikes. The PCR has dipped to 0.94 which is almost on the neutral side favouring bears mildly at this stage.

Overall markets have not yet established a strong directional move and might remain range bound between 6034 and 5857 for a while.

Resistance levels : 5985, 6003, 6034

Support levels : 5927, 5885, 5857


-Happy Trading

No comments: