Nifty February future opened the week at 4847.30 levels

• tanvi_singh
• February 8, 2010

Nifty February future opened the week at 4847.30 levels and after making high at around 4949.90 build-up of shorts was seen from resistance near
4950 levels.

However, some short-covering was seen on Saturday from the intermediate support at around 4700, when Nifty February future closed on a positive note with 41.1-point gain at 4749.35 levels with a 0.08% decrease in open interest.

Nifty February future continuously closed on a discount throughout the week, which shows sentiment is still bearish.
Since the beginning of week, maximum OI has been seen in 5000/4900 calls. On Saturday, long build-up was seen in 5000 calls with a 4.31% increase in OI.

Short-covering was seen in 4900 calls with a 2.50% decrease in OI, which shows 4900-5000 to be an important resistance level. On the put side, maximum OI has been seen in 4800/4700/4600 puts. On Saturday, short build-up was seen in 4600 and 4700 puts. Nifty 200-DMA was also trading at around 4650. A combination of call/put data along with 200-DMA shows an important support zone around 4600-4700 levels.

PCR (V) has been trading in a range of 1-1.05 throughout the week, which shows calls of 5000/4900 and 4600/4700 puts both have been of interests for traders. India VIX after making high at 30.07 on February 5 showed some selling pressure to 29.22 on February 6, which shows some positivity for the market.

If VIX maintains below 30.07, then selling may continue till 4550 levels. On the other hand, if VIX stays below 30.07, short-covering till 4950 can also be seen.

As per international indices, the intermediate downward correction is being seen across equity markets. In the US, Dow Jones has been trading below its crucial resistance at 10300 levels. Until Dow Jones shows strength above 10300 levels, sentiment may remain bearish across equity markets in America, Asia and Europe.

Technically, intermediate downtrend correction is still continuing in Nifty. Until Nifty manages to show decisive strength above 4950 levels, sentiment may remain bearish. However, some strength may be continuing from intermediate support in 4550-4700.
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• Last Modified: February 8, 2010
• Filed Under: Latest News, MARKETS, NATION, WORLD