The frontline technology stocks gained between five and seven per cent each as the rupee weakened to a 13-month low against the dollar. The May futures of Infosys Technologies were up 4.32 per cent, while TCS futures rose by 7.11 per cent.
The bulls started taking long positions in Nifty May futures around 4940 in the absence of fresh shorts at lower level. The thin volumes charged up the bulls, while bears started covering their short positions as Nifty moved up from the day's low and crossed the major resistance of 4980.
The open interest in Nifty May futures contracts declined by four per cent or 13.28 lakh shares. The Nifty futures moved to a premium of 6-10 points on account of short covering.
The turnover in the derivatives segment was Rs 32,919.78 crore on Wednesday compared to the previous day's Rs 38,107.72 crore. The trading volumes in index and stock futures declined by Rs 2,000 crore each, while the volumes in index options reduced by Rs 1200 crore.
There was put writing at 4900 and put covering at 4800 strike prices. This indicates that Nifty has a support at 4900 and is unlikely to breach the 4800 level. However, aggressive call writing took place at the strike price of 5100 (OI rose 7.31 per cent), suggesting resistance at this level.