Last week saw markets correcting around 3% to close the week at 5890, a lowest close in nearly two months.
Pattern-wise, it favors bears to a good extent after a complete bearish engulf the previous week. Over the week, options saw implied volatility skew in puts and puts were trading much cheaper when compared to the calls and right now the skew has shifted and is favouring bulls for this session.
Overall bears still have an upperhand and any upmove of today might be followed by a strong correction in the subsequent session.
On friday, there were strong increase in open interest in all the near strike calls and going forward 5985 might act as a strong resistance level for this series.
Resistance levels : 5905, 5957, 5985
Support levels : 5857, 5826, 5786
-Happy Trading
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