A deciding day to determine the short term trend...

Markets after testing and closing below the 20 DMA in the earlier session at 6072 regained some of that in yesterday's session to close just a shade below the 20 DMA resistance level of 6131.

It looks like today's session will be crucial to decide the short term trend and markets might turn bearish after any initial up move in the later half of the session.

Options data saw accumulation in near strike puts and overall puts still have a lesser implied volatility compared to calls and there is a chance for markets to test lower levels before the close of this series.

Resistance levels : 6129, 6150, 6185

Support levels : 6102, 6060, 6009

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Nifty 12 Nov 2010

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A correction and a bounce to complete the consolidation for the week

Yesterday markets had a significant correction and closed for the day below 6200 levels at 6194 after breaking the support of 6203.

A retest of 6150 levels has happened right now and market is hovering around yesterday's close at this stage.

There is build up in the near strikes o f both puts and calls at this stage and PCR being at 1.01 is indicating a neutral stance at this stage which would complete the consolidation for the week. Pattern-wise markets are still under the control of bulls as long as 6150 level is held on a closing basis.

Resistance levels : 6203, 6234, 6265

Support levels : 6185, 6150, 6129

-Happy Trading

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Markets hovering in a tight range with bulls and bears alternating

The consolidation of Nifty is tightening with bulls and bears alternating every other session. Yesterday markets towards the end corrected from 6300 levels to close for the day near to the low at 6276.

OI increase was seen in all out of the money calls and 6300 puts also added around 8 lakhs in OI. PCR is almost constant at 1.08. For this week it looks like there will again be alternating sessions between the bulls and bears, before a strong directional move next week.

Resistance levels : 6312, 6336, 6366

Support levels : 6265, 6234, 6203

-Happy Trading

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A close above 6300 again and a consolidation for the week...

Markets were confined between the key levels of 6234 and 6312 yesterday and after testing low levels, there was also a strong bounce towards the end of the session to close above 6300 levels for the first time after the Muhurat session.

Options data saw an increase of around 16 lakhs in 6300 puts. There was also increase seen in all other near strike puts and calls and PCR came down to 1.07.

Nifty is consolidating around 6280 levels and might be hovering in the range till this friday before going for a rally next week.

Resistance levels : 6312, 6336, 6366

Support levels : 6265, 6234, 6203

-Happy Trading

www.tripleint.com

Markets consolidating this week before another strong up move

Yesterday Nifty could not move beyond the first resistance level of 6336, corrected and closed at 6273 levels.

Options data saw increase in both 6500 call and 6000 puts and the PCR has come down to 1.17 levels though favouring bulls.

It looks like markets is likely to consolidate for a week between the range of 6336 and 6234 levels with a possibility of a momentary test of 6203 levels, before it can stage another strong rally surpassing previous high.

Resistance levels : 6312, 6336, 6366

Support levels : 6265, 6234, 6203

-Happy Trading

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Nifty 08 Nov 2010

- Happy Trading www.tripleint.com

Bulls pushed markets to an all time high close...Will it sustain ?

Nifty made a strong up move last week with a gain of 4.9% and closed the week above 6300 levels at an all time high close of 6312.

Pattern-wise bulls have established a strong upperhand after a consolidation of around 4 weeks in the range of 6000 to 6200 levels.

The build up in options data is increasing steadily with increase seen in both near strike puts and calls. 6500 calls and 6000 puts are ruling above 60 lakhs of OI.

The PCR value is 1.38 which is favouring the bulls to a good extent for another rally and implied volatility in near out of the money calls has reduced when compared to puts which again favours bulls to some extent.

The extrapolated target level for Nifty is 6366 and it is likely that markets can test the level in the near term. There might also be another strong up move beyond that based on how the options data turn out to be.

Resistance levels : 6335, 6366, 6421

Support levels : 6284, 6203, 6151

-Happy Trading

www.tripleint.com