Bulls had a wonderful series in June towards the end with a non-stop rally for six consecutive sessions.
The expectation of Nifty to go higher for the expiry came true but the magnitude of the rise was not on expected lines. Nifty reached the first resistance of 5656 levels mentioned and then closed a shade below that level. The strong spike came in at 3pm towards the end of the session.
One of the main reason for the expected breakout was low build up in 5600 calls the previous day and massive writing of 5600 and 5500 puts. The same happened on the day of expiry also with unwinding seen in 5600 calls towards the end. Also Nifty did not break the key level of 5600 support during the entire day. The pattern was similar to that of March 2009 series.
Now that we have entered the new series, the 200 DMA is at a reachable distance of 5751. Bears of the last series did not get a chance to come out yet and were forced to quit at a loss due to the gap up that was seen in almost all the sessions towards the end. Nifty might hover in a tight range of 200 points between 5558 and 5750 levels for sometime in the beginning of the series before making the next move.
Resistance levels : 5685, 5704, 5751
Support levels : 5606, 5584, 5558
-Happy Trading
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