The markets lost significantly today on account of negative global cues
and high inflation numbers. I told you that high inflation number may depressed investors. The Sensex closed at 16678, down
203 points from its previous close, and the Nifty shut shop at 5055,
down 67 points.
Nifty future closed at 5054 -1.34% and open interest decreased by -3.70%
nifty 5000 put added 369050 contracts in open interest and 5000 call decreased by 246950 contracts from open interest. Nifty 5100 call added 944950 contracts in open interest and 5100 put decreased by 650100 contracts from open interest. Indicating that it will spend between 5000-5100 range. Nifty has slipped in a single move below 200 Dma and 50 dma. Itold you yesterday that below 5090 bears will do batting. As per EOD daily charts RSI, and slow stochastic has turned its face and giving vote for bears and BEARISH ENGULFING pattern has formed on charts. .Nifty strong support is at 5020 Which can assume as Laxaman Rekha. Any close below 5020 nifty may drag to 4700 level this time nonstop. But there are no fresh shorts have been built up today in the system, Only long have been covered by smart money. But from three days we have been seeing that 4700 and 4600 put open interest was increasing. Is that hedging or fresh buying by smart money will be confirmed if nifty give a close below 5020 level. Some more days need to be cautious. If RBI doesn't cut CRR may depressed investor and may drag nifty towards 4700. Huge open interest addition in 5100 call today will create problems nifty to cross 5090 level. One more thing I have watched that open interest volume has increased by 4% which indicates that smart money are still looking for long side.
Over all do intraday trading for two days, after that trend will confirmed.
CONSIDER--- closing below 5020 heavy fall
CONSIDER----closing above 5090 now this time huge jump on the way.
CONSIDER these above labels for support and resistance for next trading session.
