Nifty Futures gains above 5700 levels on short covering - Religare

Nifty futures opened lower on back of weaker global markets, holding on to 5600 levels trading near the 200 day average of 5640 before pulling higher in the last one hour of trade to close at the high of the day. Nifty futures closed up by 38.40 points at 5714.25 with a premium of 31.65 point to the spot closing of 5682.6.

There was good amount of short covering in individual stocks with prices moving higher in the last one hour of trade. The advance decline was also good with 121 advances and 31 declines. Rollover has being in line with the averages, while metals and media had low rollovers. Banking, Fertilizers and Oil-Gas sectors gained the maximum open interest.

Nifty futures have gained today above 5700 levels, on back of some short covering in the last one hour of trade one will have to observe whether it continues to trade above 5700 levels in the coming days. The immediate resistances are placed at 5750 and 5780 levels while on the downside supports are placed at 5650 and 5620 levels.

The key benchmark indices surged at the end of the session after a volatile session seen throughout the day. The market edged lower in early trade on weak Asian stocks. Market was weak during the day but is surged due to short covering seen in late hour trade. Buying support seen in Metal and Capital goods stocks and its BSE indices closed more than 2% up. The market breadth, indicating the overall health of the market, was positive.

Source : Equity Bulls

Keywords