On friday, markets corrected significantly the moment the key support of 5150 was broken along with bull traps around the level of 5150 and 5128. The short term bearish trend was confirmed on a move below 5106 levels.
Looking at the options data, there were heavy selling seen in 5200 and 5100 calls and the open interest increase significantly towards the end of the session, indicating further downside move.
Also 4900 puts saw unwinding which also indicates further bearishness. Now that the initial range arbitrage is coming to an end, nifty might move well below its 200 DMA which is at 4981 on extrapolation, before giving another strong bounce towards the end of this series.
Resistance levels : 5106, 5128, 5150
Support levels : 5046, 5018, 4981
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