Tuesday, December 15, 2009

Intra-day play continues. Is it high time for an upside breakout ?!


It has been a continuous range-bound play for the past two weeks and the bands are becoming narrower with each day with historical volatility also shrinking and is ruling almost at year low. 

A breakout on any side with volatility expansion and price move is expected anytime during this week and looking at how 5080 is strongly held and also the pattern, implies an upside breakout.

During intraday, there has been hectic activity seen in 5000 puts and 5200 calls. At one point in time 5000 puts were ruling at 70 lakhs open interest and towards the end of the day, it changed to 70 lakhs for 5200 calls. 

It is better to wait and watch for the decisive breakout to happen before initiating new positions.

Resistance levels : 5120, 5135, 5155

Support levels : 5084, 5067, 5052


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Happy Trading
www.tripleint.com

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