January 21, 2014

Market outlook

NIFTY is trading in a triangle and possibly nearing the end of contraction phase. This is likely to get over in 1-2 weeks after which we will have a breakout (direction unknown).

Option writing clues point to support at 6200.

In futures, sustaining above 6350 will be bullish. But if we have a breakout and markets don't move after the breakout, then it means follow thru buying is missing at higher levels and this might encourage bears to start shorting the market.

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