Yesterday move came as a strong surprise after markets opening gap down and testing the support near 5200 levels, staged a strong come back towards the end and managed to close above 5300 levels.
The key level of 5285 is being crossed either side with bulls and bears alternating each day. This points to a range bound arbitrage move where option sellers push markets down to sell put options and reverse the next day to sell call options before markets can take a directional move.
The strong trend move will happen only on a break and close of 5191 or 5333 levels as indicated in the weekly writeup and as of now the direction has not yet been set. A key support level with bear trap is seen at 5260 levels in yesterday's chart and as long as that is held, markets can rally very strongly to reach the monthly target of 5462 levels in the immediate term.
How to trade?
Go long around 5260 levels with 5232 as a close stop for a target of 5333
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