Wednesday, July 27, 2011

A neutral close from here on...The expected strong down move came in yesterday...



The expectation of a range bound market and the markets hovering around 5600 levels for the series was being held, but then the magnitude of the range was lesser at each stage.

A bounce was expected earlier only after testing sub-5500 levels, which did not happen and markets started the up move from 5535 levels itself. Similar to that the strong down move was expected after testing 5734 levels, but that happened just after testing above 5700 levels.

Overall the view remains the same that it is going to be an expiry around 5604 levels, even if markets test further lows from this level for this session.

Click below image to get the OI and price info for the near strike options.



PCR is neutral at 0.97.

Resistance levels : 5604, 5631, 5670

Support levels : 5558, 5529, 5485








-Happy Trading

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