Nifty fails to sustain at higher levels - ICICIdirect

After opening in the green the Nifty could not sustain at higher levels and traded with a negative bias to close near the day's low. The premium shrunk from 37 points to 9 points.

FIIs were net buyers in stock futures and the cash segment to the tune of | 377 crore and | 857 crore, respectively, while they were net sellers in index futures to the tune of | 710 crore

India VIX went up from 13.76 to 14.34 (up 4.22%).

In the options space, on the Call side, Nifty 6000, 6100 and 6300 Call saw additions of 1 million shares, 0.8 million shares and 1.8 million shares, respectively. On the Put side, the Nifty 5900 Put saw additions of 0.95 million shares.

Nifty: The Nifty is likely to open negative on the back of negative global cues. It is likely to trade in the range of 5960-6030. The trading strategy would be to create short positions if the Nifty resists at around 6028 levels for targets of 5988 and 5970. On the other hand, one can also create long positions if it takes support at around 5960 levels.

Bank Nifty: The Bank Nifty is likely to trade in the range of 12500-12650.

OI addition: We saw long build-up in Asian Paints, Bhushan Steel, IFCI and Kotak Mahindra Bank while short build-up was seen in Bank of Baroda, Jubilant Foods, IDFC, Bhel, Punj Lloyd, Adani Power, SBI and JP Associates.

OI shedding: We saw short covering in Havells, TCS, HDFC and Ashok Leyland while long closure was seen in Axis Bank, Allahabad Bank, BPCL, Federal Bank, Cipla and Coal India.

Source : Equity Bulls

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