Short positions witness build-up

F&O OUTLOOK

NSE Nifty ended at 4715.90, down 23.70 points or 0.5 per cent from Monday. It fell to a low of 4634.00 during the day.

"The markets witnessed a sharp sell-off right from the opening, following weak global cues. The Nifty broke down below the crucial 4700," said P K Agarwal, president, research, Bonanza Portfolio.

The Nifty June futures contract ended at 4706.00, down 16.30 points, July contract closed at 4705.80, down 16.55 points, and the August contract ended at 4702.70, down 20.75 points.

The 4650-4700 band is seen as an immediate support and if the Nifty holds this level, it is likely to face resistance at 4830 on the upside, dealers said.

Reliance Industries' June contract ended at a premium, with a marginal rise in open interest. Dealers said investors covered their short positions in the contract during the day.

"ACC, DLF, Reliance Industries and Ranbaxy Laboratories saw good buying interest on Tuesday," said a derivatives analyst.

Reliance Industries, Reliance Petroleum, Essar Oil, DLF, Infosys Technologies, Tata Steel, Reliance Capital, Cairn India, and Larsen & Toubro were the most active June contracts.

The turnover in NSE's derivatives segment was Rs 404.49 billion compared with Rs 352.58 billion on Monday.