Nifty expected to trade in a range ::Emkay

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Nifty expected to trade in a range

View: Overall data indicates the Nifty has an immediate support placed at around the 5500 levels. With most of the Asian indices trading in positive territory today, Nifty is expected to exhibit a similar kind of move. Resistance is likely to prevail at the 200-day EMA placed at around the 5585 levels.

Despite the sell-off observed in the index yesterday, Nifty July futures failed to register any significant accumulation in open interest. The open interest increased marginally by 0.04 million shares to 22.71 million shares. FIIs continued to remain net sellers in index futures segment to the tune of Rs6450 million along with an increase in open interest to 0.48 million contracts from 0.47 million contracts.

Among Nifty July options, Nifty July call strike of 5500 and Nifty July put strike of 5300 added around 2.16 million shares each yesterday. Maximum open interest continues to remain at 5800 call strike (8.51 million shares) and 5500 put strike (8.45 million shares). Nifty July 5400 put strike witnessed closure of 0.50 million shares to 6.57 million shares.  Data indicates the index has an immediate support placed at around the 5500 levels. Any slide below 5500 levels will induce selling pressure in the Nifty targeting levels of 5250-5300.