Thursday, June 30, 2011

Bulls to charge towards the end for the June series after a two month high close yesterday


Another gap up and markets without retracing made a close above 5600 levels after two months yesterday.

PCR has moved to 1.10. 5500 and 5600 put added 18 lakhs and 28 lakhs in OI and on the call side 5700 call added 28 lakhs in OI. Though the turnover in 5600 call was huge, the change is OI is just 4 lakhs.

Nifty has been mostly hovering in a premium of 5 to 6 points towards the end of the series and though the IV of 5600 put is around 18 much less than that of 5600 call around 24, the expectation is still that markets will be pushed to higher levels for the expiry.

Today being the expiry day, Nifty is likely to open around 5620 levels and remain in a tight range, before bulls can charge again and take it for a close around 5685 levels after testing above 5700 levels momentarily.

The expectation is that markets may not dip below 5584 levels for the day. Only on a move below 5558 will be bearish for the market but it is highly unlikely to happen today.

Resistance levels : 5656, 5685, 5704

Support levels : 5596, 5584, 5558


-Happy Trading

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