Wednesday, August 4, 2010


Few Observations:

-Nifty still not closed above 5475

-FII's  relentless buying continues.

-5600 call have again exceeded in O.I. above 5500 strike.
 5300 put remains the highest O.I. strike and 5400 puts continue to addon.
 Surprisingly the 5500 calls showed no unwinding today.
One important observation is addition of approx. 50% O.I. at 5500 put strike.
Put/call ratio is balanced at 1.06.
The discount in nifty futures along with decrease in cost of carry indicates short build up at higher levels.

-In short term 5440 becomes a support now and level to be watched on closing basis ,as it has the highest volumes in a 5day chart.

-Today's closing is above daily and weekly 5d high ema & Indicators remain O/B in weekly charts. 5485 level was the Bollinger Band top as mentioned previously.

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