After the neutral expiry close for august with wild swings intraday as written in previous post, markets are right now under the influence of option sellers for the past two months.
The historical volatility is slowly increasing with heavy accumulation seen already in the near strike puts and calls.
It looks like markets can remain range bound for some more sessions before breaking out and the implied volatility of calls being low at 12, compared to that of puts at 24 could suggest a strong upside move also on any major correction for the month.
As of now, the trend is not yet clear and Nifty is resting on its 20 DMA and it is better to wait and watch for a few sessions before initiating further trade.
Resistance levels : 5485, 5509, 5523
Support levels : 5462, 5448, 5432
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