Nifty likely to move in 5250-5800 band in June

Nifty June Future opened week at 5497 levels and after making initial low at 5441 levels, Nifty June future showed good strength and made high at 5594 levels on Wednesday. A long build-up was seen from Monday to Wednesday.

On Thursday, Nifty June future opened with gap down note and closed in red at 5558.45 levels with 32 points loss and 1.83% increase in OI. Clearly, short build up was seen on Thursday. Nifty PCR (V) stood at 1.29 levels, which shows that activity on put side was more aggressive.

On Thursday, maximum OI also has been seen on 5800/5700 and 5600 calls. Long unwinding was seen in 5600 and 5400 Calls with 1.07% and 1.77% decrease in OI, respectively. A short build-up was seen in 5500 call with 0.10% increase in OI. On the put side, maximum OI has been seen on 5400/5000 and 5500 puts. A long build-up was seen in 5600/5500 and 5400 puts with 7.18%, 23.53% and 9.72% increase in open interest respectively.

Most equity markets from the US , Europe and Asia are showing profit-booking at higher levels, which shows that sentiment may remain soft in our market.

Overall scenario shows that Nifty may trade within 5250-5800 range during the June month. On the other hand, if Nifty June future manages to maintain above 5625 levels, expect a rally till 5750-5800, else Nifty June future likely to trade within 5625-5325 or 5625-5250 range for the next few days.

A long build-up was seen in Fortis stock while a short build-up was seen in the Sesa Goa stock. As per sector performance, FMCG, consumer durables and oil & gas sectors have been major out performers on Thursday and banking, metal, realty and auto sectors have been major outperformers.

On Thursday, Fortis June future showed short covering and closed above its resistance at 165 levels. Stock may reach 172-175 in coming trading days. On the other hand, Sesa Goa June future showed short-build-up from resistance in 290-295 zones and closed at 281.4 levels. Sesa Goa may decline to 278-276
levels in coming trading days.