January 22, 2015

Market outlook

Trend is up with reversal level at 8550 spot.

Nearest possible target is 9000 levels +/- 100 points (based on Fib projections). This means a rally of another 100-200 points is possible.

Option writing points to strong resistance at 9000 levels (FEB series) and strong support at 8000 levels. This means writers are expecting a range expansion and that too on the downside. The only fault with this analysis is that we are close to expiry and the levels can get a bit unreliable.



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