The markets have witnessed a bullish pattern in the last few days. The daily RSI (relative strength index) has reversed from a trendline support of 4940 and oscillators are in buy mode. The Nifty is set for further consolidation with a short-term target of 5200.
The bears covered their short positions in yesterday's trade, while bulls have initiated fresh long positions on Thursday. The Nifty May futures open interest rose by 6.40 per cent and prices went up by two per cent, indicating a built-up in long positions. However, the Nifty premium almost vanished from the intra-day gap of 35 points as no fresh shorts were initiated.
The markets witnessed short covering and long built-up in several blue-chips and hence we may see a further up-move. Short covering was evident in Reliance Communication, Reliance Industries, Larsen & Toubro, DLF, BHEL, Unitech, Suzlon and Wipro as their futures prices rose between three and five per cent on a decline in open interest.
Fresh long built-up took place in Infosys Technologies, ICICI Bank, Hindalco, Nalco, Idea Cellular, Maruti Suzuki, Tata Power and TCS.
The stock futures of these Nifty components rose by over 3-5 per cent each on a rise in open interest. In the mid-cap space, Lupin (up 11 per cent) and Bajaj Hindustan (up 6.72 per cent) witnessed long built-up.