The Nifty today opened on a negative note, took support at 2,800 and bounced back to close at 2,922. On the upside, resistance for the Nifty is seen at 2,980, while the immediate lower-side support is expected at 2,880.
According to Ashish Shroff, technical analyst of Ambit Capital, the index has intraday resistance at 2,980 levels and short-term resistance at 3,100 levels. The technical stop loss for short positions is at 2,970, while the buy signal will be generated if markets close above 2,970 tomorrow.
Call traders expect the Nifty to trade above 2,900 levels with resistance being seen between 3,000 and 3,100. The 2,900 and 3,000 call options added open interest of 1.47 million shares on a trading volume of 14.79 million shares, indicating fresh long build-up and short-covering by call writers.
Traders covered their shorts at 3,100 strike call on expectation of a bounce-back to above 3,000 levels. Put traders were seen writing 2,900 strike put as buyers booked profit at 3,000 strike put, indicating that the index may move above 3,000 levels, taking support at 2,900.
The Nifty January futures added open interest of 2.44 million shares intraday, while its premium to spot increased from 10 points to 15 points. This indicated long build-ups.
However, during the 30-minute settlement period, bear operators seemed to have unwound their short position as the increase in open interest was lower at 764,700 shares compared to the intraday level of 2.44 million shares.
As expected, Reliance Industries (RIL) got support at 1,190 and resistance at 1,260 levels. After today’s trade, the January futures of RIL was expected to trade above Rs 1,260 with a target of Rs 1,320 as buying was seen in 1,260 strike call and short-covering in 1,320 strike call.
The open interest in January futures moved up marginally by 345,675 shares despite a trading volume of 7.41 million shares, which indicated unwinding of short positions.
