Today’s market action was strongly bullish and though we came off the highs of the morning, buyers did enough to keep sellers at bay.Being above value all day and keeping sellers at bay justified the bullish behaviour exhibited since yesterday.So the day belongs to the Bulls.
I am not posting any charts today, but just expressing an opinion of the state of the market as it is. I have fallen in line with Shai’s view that this market will see Nifty go north of 5300 and more before we see any reaction. His reasoning is very simple- When our friends from across the pacific can take their index to new yearly high’s , how can we lag begind?.So we see 5315 printed tomorrow?? maybe.
From a swing trading perspective I am keeping an eye out for the Open interest accumulated at 5000 on the put side. Yesterday I saw writers behave suspiciously as they were reducing their exposure when the market was moving strongly.Today my doubts were confirmed when EOD stats showed a reduction of 5 %. I need more confirmation tomorrow for me to take action on this interesting development.Maybe, writers are using the low IV’s to square off—but that also means that they are expecting IV’s to increase and we all know what that means.