Strong resistance for Nifty above 5,200

The Nifty moved in a narrow range after opening on a weak note due to lack of support at higher levels. The participants booked profit around value areas (5,130-5,180) while there was some short-covering above 5,180.

Nifty May futures again started trading at a discount, mostly due to profit-booking. The futures shed 1.42 million shares in open interest, mostly through unwinding of long positions, Bloomberg data suggested. The market picture chart indicates support around 5,105 and fresh correction if the Nifty closes below 5,185.

Technically, the Nifty is facing resistance at the upper downtrend line and hence 5,206 is a crucial resistance on the upside. In the options segment, the participants covered short positions in the 5,200-put options as they expected the Nifty to face strong resistance above 5,200. The support for the Nifty is expected at 5,000 and at 4,900-4,800 levels thereafter. The resistance based on open interest build-up in call options is at 5,200 and thereafter at 5,300 and 5,400.

As expected, Reliance Industries faced resistance above 1,080 due to profit-booking at higher levels. The intra-day trading pattern in May futures suggested that most participants were not willing to trade in RIL at higher levels as the point of control, the price level with most TPO (time-price opportunity) charts, was below the mid-point price level for the day. The stock may face resistance above 1,090 and is expected get strong support around 1,057, the market picture chart suggests.

The participants booked profit in RInfra. The stock fell around 5 per cent and its May futures shed 119,508 shares in open interest. The price projection using TPO charts indicates that RInfra can move down to around Rs 977.50 from the current close of Rs 1,008. Bharti Airtel is expected to move down to Rs 281 from Rs 286 and Piramal Healthcare to Rs 477.50 from Rs 507.25.