What the markets did last week ?
Markets defied gravity last week and closed strongly at a high of 5640 levels.
-Happy Trading
Markets defied gravity last week and closed strongly at a high of 5640 levels.What does the options data indicate ?
Options data is indicating a huge open interest in 5600 calls and puts as well as 5700 calls and 5500 puts and 5400 puts. The call implied volatility was low when compared to the puts at 9.
What can be expected this week ?
The markets have already opened the week on a strong note and have made a high of 5724 levels. Most of the key levels are pointing to a fair value of 5680 for Nifty and any move above that is an over extension and is likely to correct itself.
How to trade for the week?
Though options data is not pointing to a major correction, Nifty could swing between 5544 and 5752. (5739 is a good level to short Nifty) and is unlikely to correct below 5544 levels for this series and is expected to bounce back to 5680 levels on any further correction.
Weekly resistance levels : 5680, 5721, 5739, 5752
Weekly support levels : 5631, 5605, 5560, 5544
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