With the bears failing to bring down the upmove in indices, which started in June we could see massive short covering. The only thing that can arrest the current momentum is profit booking and it looks likely to happen near to 17760-17860 levels. Once the index reaches those levels we may get to see signs of further market direction. With gap between bond and earnings yield rising, the market may see some corrective movement. Today being weekly expiry brace for some volatility. If the index gaps up above 17700 and rallies closer to 17760-17800 in the first half, we may see some profit booking by put writers at 17600/17700/17800 strikes. The late entrants into those strikes will be forced to cover if the market comes down owing to profit booking. On the other hand in the unlikely scenario of a flat opening and a dip in the first half, we may see the market rallying sharply to catch up with the gains made yesterday by rest of the global markets.
Important levels for the day
Bullish above 17600
Possible Upside targets - 17680/17720/17760/17800
Bearish below 17520
Possible Downside targets - 17460/17420/17380
Disclaimer:
The analysis provided is for educational purpose and the author does not assume any responsibility for the trades initiated based on the analysis. Consult your financial advisor before making any trades.
Important levels for the day
Bullish above 17600
Possible Upside targets - 17680/17720/17760/17800
Bearish below 17520
Possible Downside targets - 17460/17420/17380
Disclaimer:
The analysis provided is for educational purpose and the author does not assume any responsibility for the trades initiated based on the analysis. Consult your financial advisor before making any trades.
