Yesterday markets closed below 5400 levels for the first time in a week.
Option data saw some unwinding in 5400 puts and accumulation in 5400 calls and this points to some mild bearish move for the day to begin with. The OI has remained more than 1 crore in 5300 puts and 5500 calls and markets likely to stay in a tight range closer to 5400 levels.
Today being the derivative expiry day for the July series, market is likely to close the series closer to 5400 levels and is likely to swing between 5369 and 5445 levels for the day, more so getting support at 5387 levels and resistance at 5422 itself.
How to trade?
Longs can be initiated on a test of 5387 levels and lower for a target of 5402.
Resistance levels : 5402, 5422, 5445
Support levels : 5387, 5375, 5369