Nifty likely to trade in 5600-5670: ICICIdirect.com

ICICIdirect.com has come out with its report on Nifty. According to the research firm, Nifty is likely to trade in the range of 5600-5670. The trading strategy would be to create short positions if the Nifty resists at around 5668 levels for targets of 5630-5610.

The Nifty traded choppy in a range ahead of expiry. Premium of 11 points on the Nifty turned to a discount of 2 points in the last trading session.  FIIs created shorts in index futures to the tune of Rs 385 crore. They were, however, net buyers in the cash segment to the tune of Rs 538 crore In ATM strikes, Nifty 5600 Call added 1.1 million shares whereas Nifty 5600 Put added 0.6 million shares. The 5700 Put saw closure of 1.55 million shares.

Nifty: The Nifty is likely to trade in the range of 5600-5670. The trading strategy would be to create short positions if the Nifty resists at around 5668 levels for targets of 5630 and 5610. On the other hand, one can also create long positions if it takes support at around 5600 levels.

Bank Nifty: The Bank Nifty is near its crucial support of 11000 levels, which holds the highest Put base. Despite sharp declines seen in the last trading session, the option base remained intact. On the higher side, we expect any up move to face selling pressure if it is unable to surpass 11400 levels.

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