The S&P CNX Nifty fell below 4,500 in the afternoon trade due to selling in realty, metal and banking shares. However, the index recovered after noon to close at 4,514 on the back of recovery in index heavyweight Reliance Industries. The market is expected to be range-bound. Support for the Nifty is seen around 4,450 and resistance above 4,600.
Kamalesh Langote of vfmdirect.com expects the market to be in a consolidation mode and remain range-bound for a couple of weeks with support at 4,450. The Nifty will breach 4,600-4650 levels only after consolidation. The market is in a no-trade zone and hence any downside is limited.
Siddhartha Bhamre, equity and derivative analyst at Angel Broking, expects the Nifty to move in the range of 4,400-4,600 before a breakout above 4,650. The market may not go down significantly from here.
Rollovers of Nifty positions from July 2009 series to August 2009 series stood at 59.6 per cent on Wednesday, marginally higher than the same time in July. Bloomberg data suggested that most rollovers in Nifty August futures were from buy-side trades. However, rollover in the next month’s series is expected to be lower as only bulls are rolling over long positions and bears are waiting for their turn.
Options traders were buying 4,600-4,700 August series calls on hope of a fresh rally after consolidation. However, some short build-up was seen in the 4,500 call of the August series at a premium of Rs 220, which indicates that the index will face strong resistance above 4,700.