|
| Bulls to take the Nifty above 4,200 |
| B G Shirsat / Mumbai Jul 15, 2009, 00:36 IST |
|
The Nifty closed above 4,100 and thus achieved the first target of technical pullback as anticipated in this column yesterday. The strong global markets and fresh buying large cap stocks can take the index above 4,220 levels in the coming days. The Nifty is expected face strong resistance if crosses and closed above 4,300 levels.
The pullback was possible on account strong rally in large cap stocks and key index heavyweights such as Reliance Industries, ICICI Bank, Infosys Technologies and Tata Steel. Suzlon, Unitech, DLF, Steel Authority of India, Reliance Infra, Reliance Power and Grasim moved up by over 5-10 per cent each on fresh buying.
The Nifty July futures has started trading at premium to spot, the first time in the current series indicating short covering from bears. The open interest (OI) in the Nifty July futures marginally up by 0.65 million shares to 22.31 million shares despite trading volume 417 million shares in last the 10 trading sessions indicating short covering from bears while bulls are waiting for fresh momentum.
The options traders are expecting the rally to continue till the index achieves its upside target of 4,220. The traders were seen covering short positions at the 3,800-4,000 strikes calls on expectation of a fresh 100 points rally in the near future.
The 4,200 strike call added OI of 492,400 shares and the OI in 4,300 strike call was up by 229,800 shares mostly through sell orders. This means the Nifty has resistance between the 4,200 and the 4,300 levels.
The 4,000 strike put added open interest of 1.31 million shares and now holds the second highest OI among put options indicting that support for the Nifty is now shifting from the 3,800 to 4,000 levels.Index may hit 4,200 soon.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
