Nifty futures likely to see correction around 6,150
As expected, the Nifty crossed the 6,200 level in the morning but faced resistance at 6,250 and closed on a weak note on profit-booking.
Nifty October futures closed in a Doji pattern, indicating indecisiveness at higher levels. The futures added 409,150 shares in open interest, mostly through sell trades above 6,214, hinting a short build-up at the higher level.
The initial balance range (6,214-6,248), the first 60-minute period, principally established by the liquidity providers, saw profit-booking from top as well as retail traders. The value area (6,185-6,214) saw 65 per cent time-price opportunities (TPOs) and volume, mostly through change of hands. So, tired buyers and short build-up may lead to a fresh correction tomorrow.
The market picture chart, which gives an insight into buyer and seller activities through volume and TPOs, indicates the Nifty futures may see a correction around 6,150 tomorrow. The futures closed at 6,185.50, a 26-point premium to the spot. The trading in call options shows unwinding of long positions in the 6,100-strike calls, which also hints at a fresh correction in the Nifty going ahead.
The 6,200-strike call saw sell trades and some profit-booking at the higher premium. There was build-up of short positions in the 6,200-6,300-strike calls on expectation of resistance above 6,200.
The 6,000-strike puts added 903,600 shares in open interest, mostly though buy trades for hedging long positions in the Nifty futures. The 6,100-strike puts, however, saw build-up of 203,050 shares in open interest through sell trades, indicating strong support for the Nifty.
Among stock futures, ICICI Bank rose 1.61 per cent on short-covering. The TPO and volume data indicate a price level of Rs 1,175-82 for the October futures of ICICI. Tata Motors, which pared 583,500 shares in open interest on account of short-covering, is expected to move up around Rs 1,175. Ranbaxy is expected to rise around Rs 623 on strong volume and long build-up of 731,000 shares in open interest.