A long legged doji to start off the next bull rally ?!
Yesterday markets were confined between two crucial levels of 5434 and 5368 and finally formed a long legged doji pattern resting near the 20 DMA on the charts.
Options data saw unwinding of 5400 and 5500 calls and increase in OI in 5300 and 5400 puts. This is giving a bullish indication for the short term. An increase in OI of 5500 puts is required for the rally to gain momentum and as of now it is not happening indicating that it might take some more time before the next move and requires a close above 5430 levels.
How to trade?
As of now the same strategy of yesteday, a buy near 5368 levels with a stop of 5327.
Resistance levels : 5434, 5445, 5462
Support levels : 5385, 5368, 5330