Going forward, markets are likely to be range-bound with strong support for the Nifty seen at 5,000 and resistance at 5,100.
Besides, the average daily turnover in the last few trading days before expiry has fallen considerably from Rs 63,000 crore (March expiry) to Rs 43,000 crore in the current month, indicating an absence of short positions.
The rollover in May futures contracts at 18.80 million shares are at a higher side compared with the rollover of 15.24 million shares in April futures contracts two days before the expiry of March futures contracts.
The Nifty PCR was marginally up from 1.31 to 1.36 as the open interest (OI) in put options has increased by 14.37 lakh shares, while the call options OI increased by 3.47 lakh shares.
The put OI increased by 6.37 lakh shares at the 5,000 strike price, indicating support, while the call OI increased by 2.71 lakh shares at the 5,100 strike price, indicating resistance.
Technically, the five days' relative strength index (RSI), which is at 85 now, indicates overbought positions in the markets.
However, the 14-day RSI is comfortably low at 60, indicating that there is enough scope for the markets to go up. The technical resistance for the Nifty tomorrow is at 5,084 and the support is at 5,004.
