Those who went shopping on Friday , got their Valentine's day Gift by Mr. Market today.
1. The Probability #1 discussed in yesterday's EW post got nullified above 5420 and we now trade # 2 ., which means the upside range increases to 5690 levels .
Pl see reference post - EW Analysis
2. FII were Buyers today to the tune of appx. 150 cr.
3. This Fibo chart will be the reference chart in this upmove ,remember it also has 200dma at 5630 apprx. The 20dema is at 5500 level.
4. The Volume Profile is showing a high value node near 5430 level and today's VWAP is at 5415 apprx. So,this range 5415-5430 can be initial support in tomorrow's trading.Short term reversal below 5310 now.
5. For Range trading ,Stochs is a good Indicator ,time to catch up with it again after milking the Trend indicator,MACD. Follow the chart .
6. The data that catches the eye today is the huge build up at 5400 puts , 37lacs + (i.e. 65% + addition ), and the total O.I. for the strike moving above 90 lacs. This is one of the largest addition I have seen in single day's trading for any ' At the Money ' strike. (that too in such a Market trend !!)
Is the Smart money writing confidently in anticipation of a 'Reversal' in the Downtrend & corresponding big move ahead with 5400 or so levels as the base ?? Do they know something which we dont know now ,as usual ??