<b>F&amp;O Outlook:</b> Undercurrent remains bullish

The bull-run continues unabated, with the S&P CNX Nifty and BSE Sensex registering new all-time highs. The markets opened on a weak note, as expected, and remained volatile throughout Monday.  

The BSE Sensex struck an intra-day high of 17,425.34 and a low of 17,144.58 before settling at 17,328.62. The Nifty made an intra-day high of 5089.30 and a low of 5001 before closing at 5068.95, up 47 points.  

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 strong support at 5000 levels. The Nifty put options data showed that the operators have been writing puts at the strike price of 5,000 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.  

The put/call ratio of open interest in Nifty Call and Put options moved up from 1.20 on Friday to 1.30 on Monday. Nifty Put options added OI of 22.66 lakh shares, while Nifty Call options added OI of 8.08 lakh shares.

The Anil Ambani group companies continued to hog the limelight. Reliance Energy and Reliance Capital out-performed the market by gaining in double digits. 

Reliance Capital October futures were up 18.1% to close at Rs 1,809. The long positions in the stock increased by 1.42 lakh shares to 41.29 lakh shares. Reliance Industries was weak with its October futures closing at Rs 2,312.20, down 0.21%.