The Nifty may trade in a rangebound manner in the next couple of days. In the last three trading sessions, the bears hedged their positions by buying puts at the 3900 and 4000 strike prices and unwinding calls at the strike price of 4100.
The Nifty July futures continue to trade at a discount, indicating that short positions remain intact. The Nifty July futures contracts closed at 3926.50, compared to the Nifty's close of 3988.55, which is a wide discount of 62 points.
The open interest in Nifty futures had risen by 2.8 million shares at the end of the trading session. But 1.40 million shares were carried forward, suggesting the unwinding of intra-day positions.
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