We had an interesting session today with the index showing signs of a breakout with good volumes but after the initial hour the volumes and momentum both fizzled out and we traded inside a tight range between 36250-36360. The from yesterday acted as good support today until we witnessed some good amount of profit booking in the second half. The downward move did stop at our marked levels and close to today's opening price.
36150-36250 levels which in the first hour acted as the base for the upward movement should act as a strong resistance tomorrow and any heavy buying can only be seen when the price sustains above 36360.
We can look to take shorts only below 36000. Ideal targets should be 35870 and 35750. SL can be place above 36070.
Option chain also has seen a good amount of put unwinding at 35900 and 35800 levels which indicates we can see lower prices tomorrow.
Also to look at the positive side of things, the wild downward slide was stopped close to the open price and after that we did see a slow but steady move on the upside, so any +ve price action tomorrow at 36020-36050 levels can be a good entry for longs with small targets and SL should be trailed aggressively.
I will be going in tomorrow with a neutral view and plan as per the direction of the market after the first 30 minutes.