A gap-up opening is seen with the BSE Sensex expected to breach 17,500 levels and the S&P Nifty expected to cross 5100 levels. However, the profit booking at higher levels is likely to cut short early gains. The Nifty support is seen at 5,000 levels and resistance at 5100. According to technical analyst from Motilal Oswal, the Nifty has to give breakout above 5100 levels and fresh long should be considered only if Nifty crosses 5120 levels. A drop below 5030, could see the Nifty fall to 4940. Fresh long positions may be risky at the current levels, according to analysts. Kamalesh Langote of vmfdirect.com said that the hourly charts were showing negative divergence. However, it is better to wait for a break below 5000 on the Nifty before going short. The undercurrent remains up as the Nifty has a strong support at 5000 levels. The Nifty Put options data showed that the operators have been writing puts at the strike price of 5000 and this indicates a strong support. The OI at 5000 Puts increased by 56.1% to 32 lakh shares. The next significant support level is 4900 as there is a healthy build up of Put options at that level. On the upside, the Nifty could face resistance at 5100. |