During the last two weeks of september series, I was writing that momentum will kick in and will take this market higher and it now looks like the last leg of the momentum rally is underway.
Options data and pattern still suggest some more bullishness, but then it is better to stay away and sit in cash in this kind of a situation rather than to jump in and get caught on the wrong foot.
PCR indicates 30% more puts in the system and there has been accumulation in 5000, 4900 puts which should act as support in the intermediate term. It looks like put writers benefited last month and now it could be the turn of call writers. Markets being pushed higher to write more calls and as of now there is no indication yet of this market correcting significantly on the down side.
A better strategy would be to initiate bear call spread, by selling 5100 calls and buying 5200 call if market reaches 5100 levels.
Resistance levels : 5099, 5124
Support levels : 5069, 5045, 5020
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Happy Trading
www.tripleint.com
www.tripleint.com
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