Trend resolution is what was being expected but to the upside. Though the day wore its usual dull look much of the time, the soft numbers from TCS will impact trends negatively. Infy and Wipro ADRs went down immediately in the evening. So it is looking like a downside resolution now. Gift Nifty hinting at a wide gap down open.

We went thru a particularly dull time yesterday in the market. For about 4 hours, the Nifty moved in a range of 20 points! Then, in response to the sharp decline in Reliance (on the news of JIO Ipo being skipped), the index fell, only to move back up again. Since there was a lot of lateral consolidation moves in intra day charts, any kind of trend following indicator would have got triggered. No point in doing any post mortem of that. The Cpr for today is almost the same today as yesterday, as is the option position. What is interesting is that barring the large OI at 25400 and 25600 strikes, there is not much of positions until either 25 or 26K. This means that the market will move big today if either of the band ends are broken. Given the lead up to today, I would still want to bet with an upward resolution above 25600. The daily CPR level for today will be exceeded above 25585 (futures) so might as well wait for it to cross 26K just to be sure. India Vix has come down to near the lows from where, ideally, it should reverse. If it does, option premia will improve. They are quite low right now, so shorting may be for directional players and not for theta gainers. Take heed of that.

Yesterday was expected to be a stock specific day and it was. The indices just moved within narrow bands. Option sellers gave it about half a day before pitching in with their Call writes. A lot of intraday positions were also covered by the end. So it seems that traders are taking a day view only here. That betrays a nervous sentiment, one where adventure is totally absent. We ended the day with 25600Ce and 25300Pe being the new range created by the option traders. BNF was suggesting resistance at 57000 strike because of the decent build up there. It remained steady there all thru the day, indicating that today too hat shall function as a hurdle.