The CNX IT Index was an underperformer last week and it slid 2.29% to end at 6116.70. On the derivatives front we have seen that the CNX IT futures have ended at a premium of 11.95 points. The futures prices have declined along with an overall shredding of open interest and rise in the cost of carry; this is an indication of long closure in it at higher levels. For the coming week the CNX IT Index support is seen at 6055/5990 levels whereas on the upside resistance is seen at 6220/6300 levels. Maximum addition of open interest on the call options front is existent at strike price of 5500 & 5600 (with 81.03 & 92.46 lakh shares outstanding in open interest respectively) indicating this as the resistance zone on the upside whereas on the put options front we have seen maximum addition of open interest at strike price of 5300 (with 1.14 crore shares outstanding in open interest) indicating it as a strong support on the downside.
