The CNX IT index last week ended at its 5884.30 Mark gaining 1.74%. The CNX IT Futures prices surged along with increase in the cost of carry but with decline in the open interest on weekly basis, this is an indication that the index raised more on account of short covering rather than fresh long built up. For the coming week, immediate Support for the Index is seen in the range of 5800-5675 mark, below this mark the Next Support is seen at 5620/5550 mark whereas on the upside Resistance is seen at 5920/ 5970 levels.
Last Week the Nifty Index ended at 5135.50 Mark gaining 1.36%. The Nifty Futures (June) closed at a discount of 15.55 points vs. 25.55 points last week. On the derivatives front we can see that the Nifty Future prices gained along with an overall addition of open interest and increase in the cost of carry in comparison to previous week, this is an indication of some longs being built at lower levels. For the coming week immediate Support for Nifty is seen in the zone of 5040-4960, if this range is breached decisively downside pain may continue to prevail in which case Nifty may drag towards its Next Support zone of 4850/4780 whereas on the upside Resistance is seen in at 5160/5236 Mark.
Maximum addition of open interest on put options front is seen at strike price of 5000-4800 indicating it as immediate support zone on the downside whereas on the call options front we have seen maximum addition of open interest at strike price of 5200 indicating it as Resistance on the upside.
