As I mentioned in my February posts, Nifty has been trading in the range bound (5200-5600) after that correction from 5700/5800 levels to 5200. The same is shown in the below charts...
As we believe in Technical analysis all the news in the market will reflect in the price of the market, that means no need to look out for anything else like recent Libya crisis, Oil rally, Budget, Egyptian crisis, governance issues and etc.
Going by the above statement, that is Price reflecting everything, consider the moving averages of different time frames like 21, 50 and 200 day moving averages. 21 day SMA is at 5400 and is acting as immediate support to the market, and 50 day SMA and 200 day SMA are almost 5650 levels which will act as resistance as of now. And one more conclusion we can draw from the below chart 50 DMA (or SMA) goes on below 200 DMA then it will be considered as negative for the markets.
If you see the below chart, the trend lines attaching recent tops of the market has immediate supply zone/resistance at 5600 where it made double tops (marked in circles) and 5980 at resistance at higher levels.
And going by options data, 5400 Put option and 5700 call option have seen maximum change in the open interest according to NSE website, indicating possible ranges for the market for this series.
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