Monday, July 25, 2011

Entering the expiry week. Markets to hover around 5600 levels ?!



After reaching 5645 levels on wednesday, markets corrected for two consecutive sessions and the expectation was that markets will move on to test sub-5500 levels on friday before a bounce.

But then markets gave a strong bounce on friday without testing 5500 levels and reached almost the range high of 5645.

Now that we have entered into the expiry week, the expectation is for the markets to remain range bound and hover around 5600 levels before closing the series around 5604 levels.

5600 and 5700 puts added 25 lakhs each on friday in OI and unwinding to that extent was seen in 5500 and 5600 calls. PCR stands at 0.93

Resistance levels : 5654, 5665, 5680

Support levels : 5626, 5604, 5585


-Happy Trading

No comments: