As expected, the Nifty moved in a narrow range and closed in the red on lack of buying above 5,330.
Nifty April futures saw non-trend trading with 78 per cent volume changing hands between 5,310 and 5,330. Traders booked profit in the value area while there was some buying by institutions above 5,330. The April futures closed in the green and added 242,950 shares in open interest, indicating long build-up. The time-price opportunity (TPO) chart suggests that the upside for the index is at 5,353 with strong resistance around 5,347.
The 5,300 and 5,400 calls added significant open-interest while there was unwinding in 5,300 and 5,400 puts. This means 5,300-5,400 is expected to be the trading zone in the near future. Strong support is expected below 5,300, with 5,260 likely to be the trend decider. Strong resistance continues above 5,400. The bulls will have an upper hand only if the Nifty closes above 5,360. In the last few sessions, the trading volume has remained 8-10 per cent above 5,360.
The three frontline stocks saw strong buying by institutional players after Infosys Technologies announced strong guidance for 2010-11. Infosys closed above the value area (2,660-2,770) on strong volume above 2,770.
The TPO chart indicates that April futures of Infosys can rise to Rs 2,885. TCS saw short-covering and strong buy volumes. The price projection using the TPO chart is at Rs 849 as against today’s close of Rs 821.
Tata Steel continued on a strong wicket. Over 33 per cent volume in April futures changed hands above Rs 683. The TPO projection is around Rs 690. Reliance Industries moved in narrow range on profit-booking. The TPO price projection suggests support at Rs 1,108.
