Yesterday's pull back, a very strong one has raised concerns on the overall rally and it is beginning to convince a major section of bears that the rally did not have any legs and could not sustain.
Also 5075 has been shown as a strong resistance which cannot be penetrated easily.
In addition to this the PCR has also come down to 1.32 from 1.50 levels and there has been a large amount of unwinding seen in majority of the puts yesterday. FII's are net sellers of roughly 700 crores in index futures.
Does this all point to more of a correction coming in? Overall it doesnt seem so. The very fact that Nifty was pushed to levels beyond 4950 and having let it stay above that level for a longer period with lower volumes indicate that there is more upside to this rally and as of now it is again a buy on dips. Only on a break below 4885 would large sell off set in and it looks remote currently.
Resistance levels : 5007, 5024, 5045
Support levels : 4969, 4945, 4924
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