The Nifty moved in a narrow band of 30 points and closed in a Doji pattern on lack of support at higher levels. We may see some profit-booking on Thursday as the Nifty June futures closed at a discount to spot and added 359,350 shares in open interest (OI). Also, the narrow range of the trading activity suggests that participants want the market to consolidate at current levels before moving above 5,270.
According to Bloomberg data, there was profit-booking from top traders when the Nifty moved above 5,240 and short-covering below 5,220. This means it will be difficult for the Nifty to move above 5,270 and achieve the target of 5,330. Inversely, the index is expected to get strong support around 5,200. However, if the Nifty loses its support of 5,180, it may slide to 5,100 levels.
The Nifty call options data suggested profit-booking in the 5,100-strike call and fresh short build-up at the 5,200-strike call. This means, the Nifty may not move below 5,100 and is likely to face strong resistance above the 5,200 level. According to the put options data, the support for the Nifty at 5,200 may continue for some more sessions as the 5,200-strike put added 1.27 million shares in OI, mostly through change of hands.
Among stocks futures, ICICI Bank closed on a weak note despite gaining 1.50 per cent. The June futures of ICICI Bank witnessed profit-booking and shed 345,450 shares in OI, while July futures added 1.37 million shares — mostly through sell-side trades. Traders were willing to buy ICICI Bank at around Rs 860, while it faced strong resistance above Rs 865. The price projection for ICICI Bank is at around Rs 855, based on a time price opportunity (TPO) chart.
Infosys Technologies moved in a narrow range and closed above the value areas on short-covering from top traders. The June futures expected to move around Rs 2,780 mark from the current close of Rs 2,762, according to TPO data. Participants booked profits in the Reliance Industries June series and built up long positions in July series. The stock is expected to move in a narrow range and is likely to get support at Rs 1,052.