Tuesday, January 11, 2011

Markets testing important support level.


Another strong correction ensued yesterday and markets without looking back reached the last support level mentioned for the week of 5752, testing below that and closing just above that.

Any break of this level further on closing basis can push Nifty towards the levels of 5491. It looks like it can consolidate around this level for a while before making the next move.

Options data saw huge increase in OI in near strike calls as well as puts, with more increase seen on the call side.

Going forward 5903 will act as a stiff resistance for this series and below that chances of market slipping further towards 5491 levels seems high.

Resistance levels : 5791, 5832, 5846

Support levels : 5752, 5721, 5690


-Happy Trading

No comments: