Nifty is likely to trade in the range of 5200-5400 levels over the series with an intermediate resistance at 5400.
Open interest addition remained
skewed towards put options. The open interest concentration for April series continued to be in the 5200 strike put with the highest open interest of above 75 lakh shares, indicating crucial support in the near term.
Nifty 5400 strike call has an open interest of above 68 lakh shares, signifying that the level is the immediate resistance. Implied volatility (IV) still continues to be on the lower side of the band, indicating caution.
The basis movement remained one-sided during the week closing at a premium of 1 points. The move may remain mixed with selling pressure near 5400 levels. The index may find intermediate support around 5280,5220 levels. Options activity suggests a movement between 5200-5400 levels this week.
