Strong support for Nifty seen at 5200: Nirmal Bang

The Indian stock market continued its upward trend in the February series with the Nifty gaining around 7% in the February expiry series.

Improved global economic outlook, expectations of easing of the monetary policy by the Reserve Bank of India and buying interest by Foreign Institutional Investors (FIIs) are some of the major reasons for the northward movement of the markets.

The February series started with a Put Call Ratio (PCR) Open Interest (OI) of 1.30. (PCR OI indicates the number of outstanding calls for each Put in open interest).

After touching a low of 1.22, the PCR OI was 1.80 on 21st February. The markets entered into the overbought region on 21st February - as suggested by the 1.80 PCR OI - to close at the level of 5,622.15. Since then, the Nifty has corrected by more than 2% due to profit booking.

As the Nifty Futures touched the level of 5,670, the VIX touched its February series high point of 25.27 (India VIX measures traders