In the last week, each day had a move to trap the bulls at some higher level and then bears took total control to close almost near the day’s low.
This clearly indicates that majority of the bulls are trapped at each level and friday’s intraday pattern also suggest that a strong bull trap is seen around 5050 levels which should act as a strong ceiling for this series.
Looking at the PCR, it is now at 1.12, though not favouring bears much, but the fact remains that the PCR has been decreasing when the markets were under bears control last week. The OI in 4900 put which reached more than 70 Lakhs has now cooled off a bit to 53 Lakhs which could also mean that the strong hands which wrote the puts earlier could have covered and now there is a good chance of this market to retest 4900 levels before expiry.
Resistance levels : 5018, 5032, 5045
Support levels : 4985, 4968, 4945