The markets had a buoyant opening on the back of strong global cues. However, the indices pared most of their gains due to profit-booking at higher levels. The Nifty reversed from near-5,000 levels to close at 4,750.The Nifty April futures ended lower by 15 points at 4757. The premium narrowed from 33 points to three points and the open interest declined sharply by 12.3 per cent or 44.69 lakh shares, indicating unwinding of long positions by bulls.Analysts were expecting the markets to do well in April due to the unwinding of short positions by bears and rollover of long positions by the bull operators. However, the Street is neutral even three days into the current series, with the Nifty trading in the range of 4600-5000.Bulls and bears are booking profits at regular intervals and seem to be wary of taking fresh positions at the moment, according to Anand Kuchelan, derivative analyst at PINC Research.Technically, the markets are trading in a triangle and waiting for a breakout. Since the triangles are difficult to trade, it makes sense to sit out and wait for a breakout or a clear direction, said Kamlesh Langote, technical analyst, vfmdirect.com.The Nifty PCR remained unchanged at 1.23, indicating uncertainty among the options writers. The open interest in 4500 put is increasing even in falling markets, which shows the emergence of support at this level.The 4900 and 5000 Call options open interest is on the rise, indicating strong resistance for the Nifty around these levels.
