| There were short positions in Nifty March futures yesterday as the open interest increased by 4.51 per cent coupled with a 5.57 per cent fall in prices. |
| But the open interest declined by 5.5 per cent and the futures prices rose by 3.3 per cent on Friday, indicating short covering. The futures traded at a premium for the first time in this series from a huge 26 points discount yesterday. |
| The last couple of days witnessed short-covering below 4,600 and fresh shorts being created above 4,700. The bulls won the battle on Friday. They built long positions around 4600, took the Nifty above 4,700 and forced bears to cover their short positions. |
| According to Sailav Kaji, head, derivatives and strategy at PINC Research, the Nifty seems to have bottomed out around 4,600 levels. |
| The index dipped below this crucial support level at least four times during this month's derivatives contract, but never closed below it. The fact is that industrial growth has slowed down a bit. But we continue to report positive numbers, which portends well for a market recovery. |
| The Nifty PCR declined further to 0.90, mainly due to unwinding of in-the-money Put options. However, there was notable open interest addition in the 4800 calls and 4500 puts. The Nifty has taken support at 4600 levels on an intra-day basis on Friday and this will hold for the near term. |
Top Section
Explore Business Standard