What the markets did last week ?
Last week markets closed where it had started inspite of testing higher levels of 5367. It was the expiry week for the june series and markets ended close to 5300 levels. Pattern-wise, it has formed a grave stone doji pattern and markets closed at 5269 for the week.
What does the options data indicate ?
It might be too early to start reading the options data, but both the put and call options are ruling at a volatility very close to the historical volatility indicating a volatility expansion move likely to happen within the month. Overall there are still lot of puts in the system, which should provide cushion on any correction and markets likely to continue its upward journey in the month towards 5462.
What can be expected this week ?
The grave-stone doji pattern cannot be read in isolation and requires a confirmation on the trend.
This week could see markets swinging from 5191 and 5333 and at present 5191 levels should act as a strong support and it is unlikely for markets to fall beyond that and even if it does a sharp bounce is not ruled out.
How to trade for the week?
This week it is better to play the range with a long around 5191 levels and a short on levels of 5333 as it might take a while for markets to decide on a strong short term trend.
Weekly resistance levels : 5302, 5333, 5369
Weekly support levels : 5245, 5191, 5150
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