Today's Bet: 5100-5300 level crucial for Nifty

The Nifty opened the week on a positive note and maintained above 5150 levels since the beginning of week to December Expiry. Nifty February futures closed above 5200 levels with 14 points premium, 37 points gains and 14 per cent increase in Open Interest (OI).

Put Call Ratio (V) after trading above one for the consecutive three trading days dropped to 0.87, which shows a lot of activity was seen in Calls. Overall, long build-up was seen.

In entire December series, 5300 levels also have been one of largest OI gainers and in February series maximum OI was seen on 5300/5200/5400/5500 Calls and also highest long build-up was seen in 5300 Calls and OI was up by 52 per cent, which shows the 5300 level may prove effective resistance for further price advance. In February series, maximum OI was seen in 5000/4900/5100/5200 Puts. On December 31, short build-up was seen in 5100 Put and OI was up by 44 per cent, which shows effective support from 5100 levels may also be seen.

Trading bias may remain upside as long as the Nifty trades above 5100 levels. As per US markets’ technicals, Dow Jones has been trading in the 10550-10230 range for the past five weeks and the Nifty is still hovering around 5200 levels. Overall, the range-bound scenario in 4900-5300 seems to be taking place. Only, on maintaining above 5300 levels any unidirectional rally may be seen.

Good OI increase with positive price movements was seen in the consumer durables sector. Good open interest increase and negative price movement was seen in FMCG and pharma sectors. Stock-wise good Open Interest build-up and positive price movement was seen in Praj Inds and Bharti Airtel. Negative price movement and open interest increase was seen in RNRL and Petronet stocks.

Puneet Kinra, senior tech analyst, Equity Research, Bonanza Portfolio