Unless the Nifty falls below the support range between 4363 and 4344, there would not be any threat to the intermediate uptrend

This is the week of F&O clearing. Come next Thursday, the July series will come to an end. Considering the number of counters that are there in the Derivatives segment the current outstanding position does not seem too huge but it is quite big for sure. What would happen to that? Would most of it be rolled over? Or, there could be a substantial paring of that? These are issues facing the market.

On the corporate results from mostly we have seen good numbers; FIIs have been pumping money throughout the week while the Mutual Funds on a net basis did not do much. Breadth, as measured through net advances has been negative three days barring last Monday and Thursday.

Internationally, the Dow became a bit wobbly on the last Friday; however, it recovered quite a bit of lost ground towards the end-session. Asia would remain volatile but uptrend is likely to be maintained till such time there is a major crack at the Shanghai Composite.

Back to our markets: the Put-Call Ratio (PCR) has risen from 1.66 to 1.73. The Nifty 4600 call option added 1.18 million shares in open interest (OI), 4500 Call has also seen an increase of 0.79 million shares in OI while there has been reduction in 4400 and 4300 call options indicating a shift of positions to higher strike prices. What is significant is the addition of 3.27 million shares to the Nifty 4500 put option in OI suggesting a possible strong support for the Nifty around the 4500 mark.

The technical movement of the indices suggests that the Nifty may yet make an attempt to cross 4600. On the upside above 4600, the next target appears to be 4640. Strong resistance is likely to be felt between 4670 and 4715. The level of 4550 would be the first support and good support before 4500 would be between 4525 and 4515.

Unless the Nifty falls below the support range between 4363 and 4344, there would not be any threat to the intermediate uptrend.