The Nifty closed in the red due to profit-booking across the world markets on account of sovereign downgrades of Greece and Portugal. Global cues after the close of the market suggest a strong opening tomorrow. April and May futures of the SGX Nifty were up 25 points each on the over-the-counter segment of the Singapore Stock Exchange.
The trading pattern and build-up of open interest in Nifty call and put options indicate the derivatives expiry is likely to be above 5,250. The market outlook for the medium term remains bullish as far as it remains above the key support level of 5,140-5,180. The build-up of open interest in the 5,200-strike put of the May series indicates support.
While benchmark indices were down around 1.75 per cent, State Bank of India (SBI) and ITC bucked the trend with modest gains. The May futures of SBI closed at a premium to the April futures on long build-up by big traders. Buying was seen above Rs 2,245 as participants expected a fresh rally in the scrip.
ITC continue to face resistance at 270 and support at Rs 269. However, considering the high volume in futures and options (F&O) and cash segments, the stock is poised to cross Rs 272 in the near future.
The rollover in Nifty May futures on the penultimate day of the expiry of the series is at 17.59 million shares, marginally higher than this time last month. If we see considerable long rollovers on the last day of the derivatives expiry, the Nifty is likely to revisit the 5,300 level tomorrow.
Market-wide rollovers were seen at 62.7 per cent of the total positions in index and stock futures in value terms, which is more or less the same as the positions rolled over in the April expiry. Current market-wide futures open interest stands at Rs 57,088 crore, of which Nifty futures account for Rs 15,875 crore.
