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Friday, March 12, 2010

NIFTY TO FACE RESISTANCE @ 5150-5180

Nifty to face resistance at 5150-5180;
Nifty is likely to find stiff resistance in the 5150-5180 zone and some profit-booking is likely to emerge soon, taking it lower to 5030 and then possibly 4950 level in the next few days.

It is likely to find stiff resistance in the 5150-5180 zone and some profit-booking is likely to emerge soon, taking it lower to 5030 and then possibly 4950 level in the next few days. Only a sustained move above 5205 will indicate further strength in the index.

The cost of carry for Nifty March contracts surged yesterday and commanded a premium of more than 13 points towards the end of the session. The OI for the contract fell by a little more than 9 lakh shares, indicating that the late pull-back was more due to short covering. Reliance Industries, GAIL, Axis Bank and NTPC rose with a fall in OI, suggesting that the late spurt was due to short-covering and may not last for long. 

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