The Nifty closed around 4,800 on Friday on short-covering by foreign institutional investors (FIIs) and strong global cues. However, the trading pattern on the F&O segment suggests that the index may face strong resistance above the 4,800 level. Technically, the Nifty has to cross its Friday high of 4,835 to keep its bullish momentum. If the index slips below its Friday low of 4,755, it may revisit the recent low next week. The SGX Nifty (November futures) closed at 4,767 as against its Friday close of 4,797 indicating weak opening on Monday.

The market is expected to witness profit-booking on Monday as traders were seen selling the 4,800 and 4,900 strike calls on expectation of a sharp correction. Interestingly, traders were buying the 4,600 and 4,700 put options despite the index staying above 4,800 on Friday. The 4,600 put added an open interest (OI) of almost 1 million shares, while the 4,700 put added 0.85 million shares mostly through buy-side trade.

Click here for Cloud Computing

Also Read   Related Stories News Now - Markets at a glance - Markets pare gains - Markets off day's high - F&O Outlook: 4,700 level will act as strong support - 4,700 level will act as strong support - Sensex regains 16k in style

Also Read   Related Stories News Now - Markets remain weak - Euro zone to mull 2nd Greece bailout on Feb 20 - Pepper gains 1% on good spot demand - Lead trades lower on global cues, subdued demand - Aegis plans Rs 2,000 cr IPO More

The Nifty November futures closed at a discount of 6 points to the spot and shed 631,950 shares in OI indicating fresh shorts build-up. The intraday trading pattern in the Nifty futures suggests that the day traders were covering their long positions when the Nifty started trading below the 4,800 level.

Technically, the main indices are also trading below their previous major highs of 16,360/4,854 for the Sensex and the Nifty. This implies that they are still facing a downtrend despite the smart recovery seen in the last three sessions. With the main indices trading near some important resistances, the coming week will be crucial as the market is likely to clarify its intentions, says a technical analyst at HDFC Securities.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets remain weak - Euro zone to mull 2nd Greece bailout on Feb 20 - Pepper gains 1% on good spot demand - Lead trades lower on global cues, subdued demand - Aegis plans Rs 2,000 cr IPO

Tags : F&O Outlook | Nifty | FII | SGX | HDFC |   Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  We live for our family. have you secured them? -  Earn fuel worth Rs.2400 with Citi -  India's No. 1 Property Site. Click here to know more.. -  Get 5% cashback on telephone bills with Citi -  Diseases earlier, Saving Costs, Extending Lives. Know More.. -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Medium-sized businesses are the engines of a smarter planet. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Office 365 for professionals and small businesses. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...