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| F&O OUTLOOK: Nifty may see an upside of 5,100 |
| B G Shirsat / Mumbai Sep 18, 2009, 08:40 IST |
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The Nifty crossed the 5,000-mark in intra-day trade today but closed flat due to profit-booking at higher levels. The index’s fall from the day’s peak is attributed to the poor showing by the Reliance Industries’ stock, which fell by 5 per cent as the firm sold a part of its own shares held in a trust.
Since both the benchmark indices, the Sensex and the Nifty, closed in a Doji pattern once again, we might see a pause before any sharp movement on either side. The upside for the Nifty is expected to be around 5,100 from the current levels.
Technical analyst Kamalesh Langote of vmfdirect.com indicates that the index has the potential to rise 50-100 points from the current level, adding that there has been no downside signal as yet.
The Nifty has to break the 4,780-level for any pullback as this has acted as the support level through last week. Langote expects the choppiness in the market to increase from the current level as the retail crowd is getting in while big players are moving out.
The Nifty September futures closed in the red but settled at a premium of 13 points to the spot, indicating unwinding of short positions. The futures shed 1.97 million shares in open interest (OI) despite an intra-day increase of 1.29 million shares, which suggests that long traders have booked profit at higher levels. The Nifty October futures closed with a premium and added an OI of 1.16 million shares out of an intra-day volume of 2.60 million shares, indicating profit-booking at higher levels.
With the expiry of the September series just four days away, traders today booked profits and, hence, unwinding was seen at 4,700-4,900 strike call options.
The 5,000 call options saw change of hands as this strike call added 32,300 shares in OI despite an intra-day trading volume of 11.81 million shares. However, the 5,000 put of the September series witnessed 140 per cent rise in OI, mostly through buy-side trade, indicating hedging of long positions.
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