Nifty has started to move in a wild swing during intraday and it looks like it is going to continue for a while, though the move was confined to 40 points yesterday.
Options data is supporting the increase in intraday volatility move with accumulation seen in all the near strike puts and calls. The accumulation in 5200 puts were huge yesterday, but the OI is still less when compared to the calls.
Overall when markets reached around 5250 levels, there were writing seen in 5300 puts, but not to a large extent.
How to trade ?
Today there might be another move to test 5245 levels and the strategy is to wait and watch the accumulation in 5300 puts. If it increases by more than 10 lakhs, there could be a good possibility of Nifty going for further breakout to test 5285 and 5306 levels. If accumulation is not seen, there will be a strong move which will pull back Nifty into range to test 5203 levels. Key support and resistance levels remain the same.
Resistance levels : 5245, 5262, 5285
Support levels : 5203, 5185, 5170
-Happy Trading
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