Nifty likely to trade in the range of 5400-5490 - ICICIdirect

Post a flattish volatile opening session move, the Nifty witnessed an extended rally towards the recently broken down marks. At the end, it posted closure near the day's high at 5461, up 47 points for the day. Post the recent rally, India VIX dipped 7% and at the end settled at 25.75.

FIIs sold Rs. 149 crore in the cash segment. In index futures, FIIs were net sellers to the tune of Rs. 662 crore while in index options, they bought options worth Rs. 631 crore. In stock futures, FIIs bought Rs. 801 crore.

The highest Put base is seen at 5300 and 5400 Put strike with over 76 lakh shares. The 5400 and 5500 Put strikes witnessed addition of 21.52 lakh and 4.38 lakh shares, respectively. On the other hand, highest Call base is seen at 5600 Call strikes with over 84 lakh shares. The 5500 and 5600 Call strikes witnessed addition of 8.45 lakh and 15 lakh shares, respectively.

Nifty: The Nifty is likely to open positive on the back of positive global cues. The index is likely to trade in the range of 5400-5490. The trading strategy would be to create longs near 5412-5417 for targets of 5445 and 5465. On the other hand, one can enter shorts only if the index meets resistance at 5480 levels.

Bank Nifty: If the banking index continues to sustain above the key support 8900-9000, then it may see extended bounce towards 9600-9700. Any further weak action can be seen only if it breaks below 8900 levels.

Source : Equity Bulls

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