Markets reached the target of 5200 levels yesterday after a dip to 5140 levels during intraday.
Now that the upperband has been tested, it is likely that markets will remain in a tight range for a few sessions as indicated by the options data.
The overall build up in 5200 and 5300 calls is still heavy and so a a very strong up move at this stage is not foreseen. Since 5200 puts also saw writing yesterday, markets could remain range bound around 5200 levels with 5143 and 5245 as the range for sometime before making the next larger move.
How to trade?
Since the direction is not yet ascertained, it is better to wait and watch for a few sessions before initiating any trade. No position is also a position, sitting with cash on the sidelines.
Resistance levels : 5210, 5245
Support levels : 5170, 5143
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