Also, if the Nifty and the Sensex close above 200-DMA levels, the 9-days RSI (Relative Strength Index) at around 80 will display over-bought levels. However, the 5-days RSI which is place around 60 does not show any indication.
The Nifty May futures contracts is currently (1215 hrs) trading at 5,118, down seven points from Friday's close of 5,125. The average price at which Nifty contracts bought is at 5,116 while the high and low for May future is at 5,096-5,150. This indicates that Nifty has strong support at 5,100 levels.
The 5,100 call options also witnessed buying as the current orders book positions show more outstanding buyers than sellers. The Put writing is seen at 5,100 levels indicating support is being built at 5,100 levels.
However, the F&O players are hedging their buy positions by buying 5,000 put options.
Thus, the Nifty looks set for a continued move-up from here. A closing above 5,150 would be quintessential for the bulls to drive on second gear. The immediate support/resistance levels for the index are 5,150, 5,105 / 5,070, 5,000.
