National Stock Exchange’s Nifty closed at 5540.20, up 61.05 points or 1.11 per cent. The 50-share index hit a high of 5544.70 and low of 5478.10.

Nifty closed at 5479.15. Nifty future (Aug.) closed at 5483.05 i.e. at a premium of 3.90 points vs. 10.65 points and shredded -215700 shares in open interest.

The Nifty future (Sep.) closed at 5487.35 i.e. at a premium of 8.20 points vs. 18.35 points and added 964000 shares in open interest.

Interpretation: The Nifty future prices with good gains along with an overall addition of open interest and decline in the cost of carry, this is an indication of some shorts being built at higher levels.

Options -On the call options front we have seen shredding of open interest in August series at strike price of 5500 and 5600.

On the put options front we have seen addition of open interest in August Series at strike price of 5500, 5400 and 5200.

In August Series maximum addition of open interest on the calls front is still existent at strike price of 5500 & 5600 (though some shredding was seen today) indicating it as Resistance zone on the upside whereas on the put options front we have seen addition of open interest at strike price of 5400 indicating it as immediate support on the downside.

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