Nifty maintains its weaker position as mentioned in the previous post, small cap and midcap indices have completed a 5 wave upmove in the daily charts and it is expected to give an ABC correction in the days to come. S&P is at a crucial juncture close to the mentioned zone of 1775-1780 which can give a 10-12 % correction from the current levels. Bank of India is one stock that give a correction of 6-8% to 197-200 zone in the near future and bank nifty can drop to 11100-200 zone in the current series. Dec 20-24 can be crucial dates as all news flows would be factored in close to those dates and ideal for a straddle position in at the money options close to those dates.6200 put had seen decent build up in the entire series and we coul see some heavy call writing happening in 6200 and 6300 calls. This data suggests the upside cap of 6350-6380 and the technical picture is also pointing towards 6350 - 60 levels. Thus 6400 can be a little bit distant dream as we might probably break 6200 zone soon. As of now we could not see any major build up apart from 6200 put and the downside picture would be clear regarding the build up in other strikes.Thus midcap and small cap names can give some major corrective moves than banking as they have already corrected from their highs. Wait for buying opportunities only when the market settles down
