Looks lie NIFTY is too close to breaking out of the Volatility band. I had mentioned about this band few days ago.
The nearest supports on the daily chart (NIFTY EOD Chart) are 5217 and 5008 and then 4750. The nearest resistance is at 5426.
The hourly chart posted yesterday is still in the SHORT mode.
I had a look the option build-up of May 2010. Surprisingly, it is close to the 4750 level. You can see that, blow 4800, Call has advantage and below which, Puts. The gaps between calls and Puts are also getting wider. This too suggests a possibility of NIFTY coming close to 4750.
Combining both, at the moment, it looks like, a preparation to correct it to near 4750, is going on.
