Tuesday, November 24, 2009

Markets to stay under the control of bulls with heightened volatility ?!


It was a decisive victory for the bulls yesterday and they were able to hold the markets above another key level of 5080 for almost the whole session right after an hour of trading.

The late entrant bears of friday and also the bears in the opening session of yesterday are all trapped and this could see the markets reaching a higher levels of 5127 or even 5140 amidst heightened intraday volatility, but it could also be difficult to sustain to these levels if the move happens and a doji close is also a possibility for the day.

A move below 5060 is not expected and it is still a buy if that happens for this series.
Overall, market is still under the control of bulls with a neutral view for the day.

The PCR is at 1.21, again due to the increase in the put activity yesterday. FIIs have been net buyers of 400 cr in index futures and 300 cr in index options. They have also sold stock futures worth 300 cr. Overall this points to bullishness, but need to wait for two more trading days before concluding if 5100 calls will expire in the money.

Resistance levels : 5127, 5140

Support levels : 5085, 5063  


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Happy Trading
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