Nifty likely to face stiff resistance at 6300

Benchmark indices were marginally lower in late morning trades on Monday as investors booked profits and global markets remained weak due to political uncertainty in Ukraine.

The 30-share Sensex was down 114 points at 21005, while the Nifty-50 declined by 39 points to 6,238 levels.

Derivative Analyst, Navneet Daga says market witnessed strong build-ups of long positions and rollovers in capital goods sector from the February expiry to March F&O series while the metals space saw strong short rolls of positions. Below is the complete transcript:

Rollover in March series in Nifty was satisfactory as short positions were not rolled over while OI remained light. How do you evaluate Feb series expiry?

Well, rollover was light on Nifty but overall market wide rollovers were decent in comparison with previous series. Markets are just hanging in the cusp of new highs, as quality stocks lead the markets higher. Sector churning is the key theme in markets currently. Feb series Indian market was outperformer across EM pack and kind of Put writing visible on lower end suggesting now downside is limited towards 6150 zone.

What are the sectors that saw good rollover from Feb series?

Capital goods sector stood out in the entire February series; we saw strong long build-ups and rollovers to March series. Metals on the other hand saw strong short rolls of positions to march series

FIIs have returned in the index futures too. Is the momentum here to stay?

The relative outperformance of markets with strong FII flows suggest that we can remain bullish going forward but market is likely to face stiff resistance near 6300 zone where highest OI is seen but it’s most likely to break above these levels. Traders should use bull call spread strategy on index with upside bias.

What is your outlook on Nifty index futures for March series expiry?

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