The Nifty futures gained by 254 points to close at 4,885 on account of short-covering and initiation of fresh long positions. Both the current month and next month index futures traded at a premium, which demonstrates the creation of fresh long positions.The rollovers remained weak, with the Nifty April futures contracts carrying an open interest of 15.23 million shares two days prior to the current expiry compared with 23.93 million shares during the same time in February.The rollovers in Nifty April futures stood at 43.26 lakh shares. The March futures contracts shed 59 lakh shares in open interest, indicating unwinding of shorts following the firm global markets.The average roll-cost has been under pressure due to the lack of aggressive long rollovers in single stock futures. The roll cost is hovering around 45-50 basis points, which is lower than the average of 65 basis in the previous expiry.According to technical analysts, the Nifty has given a strong breakout on Tuesday, with a support at 4,800 to close at 4,877.50.The next target is 5,000. The subsequent target is 5,350, which is 161.8 per cent of the recent swing between 4,482 and 5,019, according to Fibonacci price projections.The Nifty PCR open interest has moved up from 0.85 to 0.95 as Put options added 22.20 lakh shares and Call options added 3.48 lakh shares in open interest.The rise in Put option OI indicates long buying in Nifty futures. The Put options OI has increased considerably at 4,800, indicating a support at this level, whereas Call options OI built-up is seen at 5,000, which would act as an important resistance.
