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Selling pressure mounted once the index breached the 16040 level. It slipped towards its 20 DEMA level placed at 15950 instantlyasexpected but managed to close above the same. With its trend strength indicator RSI now falling back below 50 with a negativecrossover is a sign for further weakness. Expect the index to revisit the lower bound of the channel pattern placed at 15740soonuntilitstays below 16135. Derivative data indicates unwinding pressure below 16000 has triggered fresh weakness which couldseeaswingtowards the next key option bound of 15700 as well. Which also coincides with the channel support being placed at 15740. Earningsseason would been the volatility ticker running high; hence its ideal to refrain from aggressive positions on either side until theindexoscillates within the 16240-15740 channel range. For the day, key option bounds stand at 16000 and 15700 respectively withoptionpains still placed at 16000 which could see a dramatic closing. Volatility skew bounds are placed at 15650 and 16250 respectivelyoutsidewhich the trajectory for option writers remain relatively safe. Traders should avoid aggressive longs until 16135 is breachedfromhereonwhile a sustained close below 15740 would open up further lower levels for the week.

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