Wednesday, April 7, 2010

Markets to move in a tight range with increased intraday volatility


After closing at a high in the previous session markets cooled off a bit yesterday and formed a short doji.

The open interest in 5300 puts and 5400 calls increased by a large number and is around 65 lakhs.
This is pointing to some consolidation between this range, before the next strong move happens.

This could bring in heightened intraday volatility with a small end of the day range between 5328 and 5386, with bulls attempting to break 5386 and test 5406 levels also.

Resistance levels : 5374, 5387, 5406

Support levels : 5363, 5341, 5328

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Happy Trading
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