Nifty,Weekly

A day of pause for the bears after thrashing Nifty for 6 weeks in a row. Trend remains down. However weekly Indicators are reaching Oversold condition. But in a strong trending market Indicators can remain in the oversold or overbought condition for long time.
OI Table: Bulls today have increased their position at 10000 Put strike. It is interesting to note that bulls have built some good position today at 10500 Put strike. So Nifty may try to correct upto 10450-60 level due to profit booking-- bears are sitting on huge profit! Bears are holding tight at 11000 Call strike-- so strong resistance for bulls for this series remains at 11000. The Trading Gap lies at the range of 10737 to 10839. Before reaching 11000 in a corrective wave, this Gap will play as strong resistance. In this Gap lies 200 DMA which will change or confirm the direction of Nifty.
Traders will carefully watch the level of 10000 which is the previous low as well as the approximate level of 100 WMA-- if this provides support to Nifty.