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| Range-bound trading seen ahead |
| B G Shirsat / Mumbai Jul 17, 2009, 00:22 IST |
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The Nifty and the Sensex ended forming a Doji Pattern, indicating uncertainty and lack of conviction among market players. The market is expected to be range-bound tomorrow with the Nifty likely to get support at 4,200, while resistance seen around 4,300.
As expected, the Nifty opened on a firm note. It made an intraday high of 4,305 and slipped in the red on profit booking from bull operators. The index closed at 4,231 on short covering at lower level.
The Nifty July futures closed at a discount to the spot and shed an open interest (OI) of 4,02,800 shares.
The August futures added an OI of 3,87,900 shares as some traders seem to have taken long positions much ahead of the July futures expiry. This means that speculators expect the index to bounce back to the pre-Budget high of 4,710 after consolidation.
Short covering from options trades was seen at 3,900-4,100 calls on expectation of the continuation of the firm trend, though with some correction. They expect the index to maintain support at 4,100 and move in the range of 4,200-4,300 in near future. The 4,300 call added an OI of 3,56,550 shares, mostly through sell orders indicating upside resistance.
Reliance Industries was back in action on short covering and fresh long build-up in the futures and options segment. The July futures were up more than three per cent and shed an OI of 3,29,100 shares, indicating unwinding of short positions. We may see a fresh rise in Reliance soon.
Larsen & Toubro fell 3.60 per cent on declining order inflows during the quarter ended June 2009.
Speculator first covered their long positions during the morning trade and build up short positions in the July futures on expectation of a fresh decline soon.
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