The Nifty finally broke the 4800 barrier before encountering a stiff resistance at 4900, true to our prediction last week. The PCR then was 0.94 at the strike price of 4800 and 0.54 at the 4900 strike price.A PCR below one means that call OI is higher than put OI and demonstrates resistance levels. Since traders take contrarian views, call writing suggests resistance and put writing shows support.Trading in Nifty options shows that bulls have taken the support levels beyond 4900. The PCR at the strike price of 4900 moved up from 0.54 to 1.01 on Tuesday as the 4900 put OI increased by 101 per cent and call OI rose by five per cent.However, bears are holding their forte at 5000. The PCR at this strike price is 5.6, indicating stronger call writing than put writing.The Nifty April futures closed at 4914, which had acted as stiff resistance on Friday, while the Nifty spot faced resistance at 4917 before ending at 4879. The Nifty April futures are trading at a premium of 33 points, suggesting a strong built-up in long positions and short-covering.The Nifty April futures OI rose by 4.28 per cent on an intra-day basis due to buying, but declined by 7.71 per cent at close due to short-covering.Interestingly, the bulls have begun to roll over their April futures positions as there are few trading sessions to go before the contract expiry. The May futures OI is up by 25 per cent, indicating long rollovers.
