February 20, 2014

Market outlook

Today we had an interesting day where markets opened gap down below the low of the previous day (yesterday was an up day). Usually this signifies trend reversal so chances are high of more downsides from current levels.

Option writing clues are not giving any clear direction. Open interest (MARCH series) is highest at 6000 put followed by 6200 call - the difference is not much and unless we have highest open interest in calls, it will be difficult for markets to come down.

For tomorrow, trading above 6140F will be bullish.

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