Resistance above 5,480

The key benchmark indices closed near intraday lows in late trade as global stocks fell on continued unrest in Libya. There was listless trading in Reliance Industries, while Reliance Infrastructure and Hero Honda topped the gainers’ list. The current series will expire on Thursday and the put-side open interest (OI) build-up suggests expiry at 5,430-5,460. The Bank Nifty is likely to witness selling pressure as its key components, State Bank of India (SBI), ICICI Bank and HDFC Bank, closed on a weak note. The S&P CNX Nifty is expected to face resistance above 5,480 and get support at 5,400-5,390.

As expected, the Bank Nifty slipped below 10,705 and closed near the day’s low on account of fresh sell-off at the higher level. HDFC Bank, ICICI Bank and SBI closed in the red on selling pressure.

Bloomberg’s market picture chart indicates fresh weakness in bank stocks, and hence, the Bank Nifty is expected to move down around 10,465. The resistance is expected around 10,975. SBI may face resistance at 2,682 and get support at 2,587. ICICI Bank may fall to 986 while HDFC Bank is likely to get volume-based support at 2,027.

The trade summary matrix data for Nifty February futures indicate buy-side trades below 5,480 and profit-booking above that level. The initial balance range (5,456-5,484) saw 56 per cent volume and 66 per cent time-price opportunities, which hints at a price-based profit-booking at these levels. The selling pressure was evident above 5,480. This clearly indicates range-bound movement with strong resistance above 5,480.

The spot Nifty is expected to get support at 5,380, and in the case of strong global cues, an upside may be limited to 5,480. The volume-based sell-off in Nifty futures in the last 90 minutes of trade from a high of 5,501 is expected to take the index below 5,400-5,390. Strong resistance is expected around 5,520.

The March futures settled at a seven-point premium to February and added 4.38 million shares in OI, which was in line with the current market sentiments. The market picture chart hints at consolidation in March Nifty at 5,460-5,496 and resistance above 5,537.