1. FII selling mode somewhat curbed ,selling only 80cr today.
2. The Volume profile of this week's trading is balanced between apprx. 5500 and 5400 level with POC at apprx.5460. All these levels are also imp. moving averages marked in the chart.
3. The Bollinger bands are also showing top and bottom between 5500 and 5400 levels.
4. The Options analysis also shows consolidation of the 5500 calls and 5400 puts ,both strikes are having highest O.I. in respective segements.
5. Volumes were lower than last two days.
6. EW count as suggested yesterday may be in the (ii) wave of the iii of the 3rd. A complex correction of this (ii ) wave may unfold in the abc-x-abc pattern such that the prices are range bound in the 5500-5400 range with a whipsaw or two.
7. Next flash move will occur on convincing break of any side ,upwards of 5500 or downwards of 5400.
8. Cause of concern for Bulls may be the Index option Put/Call Ratio hovering below 1.0 and probability of (iii)-iii-3 unfolding below 5400.
9. Range bound trade may give the impression of markets holding the multiple lows of 5400 levels and calls of aggresive buying for PreBudget rally in oversold markets will fly around , But won't this be the ideal Bear Trap !!!.
Give it a thought and trade against the Trend only once the Markets crosses the Points of Invalidation of your trading system. Be patient and give importance to what markets are whispering to u via the screen.