Nifty
Nifty bounced back from its support of 20DMA at 5280-5300 and at the same time got resisted at 5400
Nifty now has closed below the 5 dma mark which is a sign of weakness and a close below 5300-5280 will lead to further correction till 5230.
Nifty OI data
5300 puts have OI of above 90 ac which indicates strong support, but having said that yesterday the put showed unwinding which indicates a close below 5300 will lead to further unwinding and correction
5400 calls have OI of above 91 lac which indicate strong resistance
Traders better avoid taking overnight positions till n nifty is between 5300 and 5400, its better to trade a break down or a breakout.
Expect significant movement in the coming week as market players await RBI credit policy, where its widely expected that RBI will increase the rates as well as the CRR to reign in the inflation.
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