Tuesday, February 15, 2011

Next Is What ??

Let's try and analyze tomorrow and rest of the Week's trading with the available data.

1. As expected yesterday ,support came above 5400 level and resistance near 5510 level.

2. FII’s were net buyers again today for apprx. 235cr. +

3. Nifty closing for two consecutive days is above last week’s high of  5442 .Today’s Vwap of NF is at 5455 .One may keep this range 5445-5455 as SAR for tomorrow’s trade to milk both sides .This should be for quick 30 or so points .

4. Trading above today’s high of 5506 will mean that its trading effectively above 20 dema and Weekly 5 ema too.This upmove then may target 5560 (Fibo. Retrace) and 5630 (200dma) level. See Fibo chart in the Post - Is this Rally sustainable?

5. The Options data shows 5400 Puts crossing the 1 cr. mark, indicating good Support here. Also the highest O.I. Call strike is at 5600 showing Resistance at this level. There is also a large ,almost equal addition in both 5500 Puts and Calls.This will be the level of conflict in coming days.

6. So as indicated in the Weekend post for rangebound trading , now the Probability of trading in the range of 5400-5600 (+- 20 pts both sides), is high. One may keep 5500 level ipo 5300 level as the new SAR for the remaining week.

Check out the Weekend Post - Weekend Analysis

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