Hello,
A combination of Bharat Bundh & close of US Markets on Monday led to a lackluster trading session for our markets. While the Index chart itself look pretty weak unless and until we close below the 5200 level the chances of a sharp fall seem limited in nature. While the overall scenario does look bearish, the chances of a upmove cannot be still ruled out since the weakness has been pretty smooth and with low volatility. Historically Volatility is lowest in Bull Markets and highest in Bear Markets. This is because falls are generally sharp and fast as against to rises which are slow and small. This time around while markets are slowing creeping downwards, there has been no rise in Volatility as shown by the VIX. This seems to suggest that the under-current is still bullish and if not a bull run, we can at the very least see one last hurrah before a bear trip begins.
Nifty has support at 5200 and below that at 5150 and resistances at 5265 and 5300. Hourly Trend is Bearish. Max Open Interest in Nifty options is at 5200 which should provide a strong support zone for the time being.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
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