The Market Pulse The Sensex witnessed a classic tug-of-war today. After opening flat and dipping early, the index staged a smart recovery in the final hour to close at 85,106, down marginally by 0.72% for the week. The key takeaway? The bulls managed to defend the crucial 20-Day Exponential Moving Average (DEMA), signaling that the long-term trend isn’t broken just yet.

Technical Talk: The Doji Decider On the daily chart, we are seeing a Doji candle. For the uninitiated, this cross-shaped pattern appears when the open and close are nearly identical. It represents pure indecision—neither the buyers nor the sellers are in control.

• The Pivot Point: The magic number to watch is 84,800.

• Bull Case: If we hold above 84,800, expect a push towards 85,300 and potentially 85,600.

• Bear Case: A slip below this support could drag the index down to 84,500.

Derivatives Data: What are the Smart Money Doing? The Options Interest (OI) data supports a wider trading range.

• Resistance: The Call writers have built a massive wall at 86,000, meaning they don’t expect the market to cross this level easily.

• Support: Put writers are active at 85,000 and 84,500, providing a cushion against a steep fall.

The Strategy for Traders Given the recovery from lower levels, we are recommending a Bull Call Spread for the weekly expiry.

• The Trade: Buy the 85,200 CE and Sell the 85,400 CE.

• Why? This strategy limits your risk while allowing you to profit if the index creeps up towards that 85,300–85,600 resistance zone.