A gap down below 5050 levels saw bears taking upperhand and pushing Nifty below 5000 levels for the first time in two months. The weakness however could not push Nifty to test the 200 DMA levels of 4956 and bulls also were not able to push Nifty beyond the crucial level of 5050.
Options saw huge accumulation in 4700, 4800 puts and also a substantial increase in 4900 puts and 5200 calls. The accumulation seen in 4900 puts of the order of 30 lakh contracts two days before is still intact and unwinding has not happened so far. The volume PCR of close to 1 is also not indicating a strong directional move yet.
It looks like markets are back to gap up/down days with end of the day bulls and bears caught on the wrong foot each time. The trend as of now is still unclear and it is better to wait and watch for a few more sessions before concluding on the short term trend.
Resistance levels : 5050, 5098, 5116
Support levels : 4985, 4956, 4932
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