Nifty has strong resistance at 5200: Angel Broking

The Nifty has been trading firmly above the 5,100 mark over the last many sessions. In an interview to CNBC-TV18, Siddharth Bhamre, Angel Broking says, the Nifty may not breach 5,150-5,200 in June series. "As of now, we are sticking to 5,200 being a strong resistance," he adds.

Also read: See Nifty in 5000-5200 range till F&O expiry, says Udayan Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: What is your call on the Nifty this morning? A: The view seems to be divided among the foreign institutional investors (FIIs) camp. In the last six-seven trading sessions, the index futures net buy figure is around Rs 300-400 crore, which is very less, but the open interest has gone up by 38%. We can exclude yesterday’s rise of 16% in open interest because before expiry they do form positions on both these sides to reduce their rollover cost. A week before this trend was visible, huge open interest is getting built up but the net figure is very less. So, there are some FIIs who are bearish on market, there are some FIIs who are expecting probably we might be seeing a breach of 5,200 odd levels. Now, the interesting observation in last fifteen days is FIIs who have gone long and we believe, which is more of ETF, is long Nifty. The FIIs who believe that this market may not go significantly up are those guys who are short Bank Nifty. So, the pair trade continues, short Bank Nifty, long Nifty. At the same time, in July, a lot of options build up is happening around 5,300-5,400. Yesterday, we saw some 11,000 contracts built up at 5,700 strike price of call option. So, there is a growing optimism in market. But we still feel that 5,150-5,200, which is a strong resistance, may not be breached atleast in June series. We might see a closing somewhere around those levels. So, at this point of time, we won’t give a clear-cut direction, but would have more pair trades in market as the state of confusion remains. Q: Any early bias that you can spot for the July series? A: People have become quite optimistic. We are seeing targets of 5,600-5,700, some fundamental guys are talking probably about 6,000 levels. So, the biasness is turning positive. That is getting reflected in some kind of long rollovers, which we are seeing. Our main concern is what FIIs are doing. These guys are still not full-fledged bullish on the market. As of now, we are sticking to 5,200 being a strong resistance.