Thursday, December 10, 2009

Falling back into consolidation before the upside breakout ?!


Yesterday markets did not move higher after the strong bounce seen the day before. It looks like market is still getting into range bound mode and is looking for more of consolidation before giving the expected up move.

The accumulation in 5200 call is also quite huge and it stands at 51 lakhs and this could be one of the reason as to why market is not able to break the 5150 barrier and move towards new high soon.

5000 puts OI stands at 59 lakhs. This points out the fact that there may not be any significant correction beyond 5050 levels.

As of now, the historical volatility is also low and this points to the fact that after a few sessions there will be a strong breakout and pattern-wise it points to a breakout on the upperside.

Resistance levels : 5131, 5146, 5182

Support levels : 5101, 5082, 5052


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Happy Trading
www.tripleint.com

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