The markets closed with moderate losses today with metal, auto and power being the worst performers. Banking, IT and realty, too, closed negative and oil & gas and consumer durables were the only two sectors that closed positive. The Sensex closed at 16420, down 60 points from its previous close, and the Nifty shut shop at 4966, down 9 points.
Nifty 4900 put open interest added 542,650 contracts with highest total open interest 7065850 in put side. Nifty 5200 call open interest added 301,000 with total open interest 6899100. nifty 5000 call open interest added 540200 contracts in open interest. once again a volatile move we may see tomorrow between 4900-5000.
Nifty 61.8% correction has been completed today.
Now 3 situation can be happen from here.
1.- A bounce back rally may be seen upto 5115 sustaining above 5115 we may see short covering upto 5200 level.
2.- closing below 4950 a sharp fall upto 4820 level and expect correction completed there, and a pull back rally from there to 5200 level.
3.- market may trap at 5060 level and fall from there upto 4820 level.
Now consider what else supporting current situation.
Nifty higest open interest in 4900 put and buy started by FII today suggesting the situation no 1.
world future indices at the time of typing this report is in favor of situation no 1.As per nifty EOD daily charts all tech indicators is in oversold zone and supporting that market should take support at 4950. this situation is also in favor of situation no 1.
As Nifty Futures was down by 17 points and OI has increased by 14803 , which signify more shorts have been created today supporting for situation no 2. Nifty monthly charts suggesting for situation no 3.
Now watch tomorrow 5010 level, if this level sustain for an hour a pull back rally may be happen other wise nifty may fall upto 4930 level tomorrow.
