Friday, July 16, 2010

Markets looking for direction after getting stuck in a narrow range


Yesterday markets started swinging during intraday and is right now looking for a direction and is consolidating on an end of day basis after making the new high.

There was strong accumulation in 5100 puts yesterday and not much of change in OI in other near strike calls and puts. It is indicating that market is as of now directionless and looking for more of consolidation before making the next move.

How to trade?

Today markets likely to remain range bound and it is better to play the swing, long at support levels and short at resistance levels.

Resistance levels : 5395, 5420, 5442

Support levels : 5371, 5361, 5350


-Happy Trading

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