The National Stock Exchange's Nifty continued to move in a range led by gains in banks, metals and oil & gas space. According to analysts, the short-term trend is positive and traders are advised not to go short in the first week as the benchmarks might move higher.
"Total OI with which we are starting January series is fairly light and reduction of exposure of FII's in index instruments is key reason for it. Action in put options for the New Year is quite scattered with epicenter at 4500 while in calls 4900 to 5200 strikes have been fairly active with maximum built-up in 5000 strike. We advise not to go shorting for the first week of this series and there is high probability of pull back till or beyond 4900 levels," said Angel Broking report.
At 1:10 pm; the Nifty was at 4682.70, up 36.45 points or 0.78 per cent. The broader index touched a high of 4690.45 and low of 4657.35 in trade so far. The Bombay Stock Exchange's Sensex was at 15660.72, up 116.79 points or 0.75 per cent. The 30-share index touched intraday low of 15575.08 and high of 15694.05.
"The markets are approaching to major hurdle area 4750/4820 but the short term trend is still strong and no signs of reversal pattern on intraday charts. As the broader trend is down it will attract selling pressure around major levels," said Kotak Securities report.
BSE Midcap Index was up 0.45 per cent and BSE Smallcap Index moved 0.38 per cent higher. Amongst the sectoral indices, BSE Bankex was up 0.99 per cent, BSE Metal Index gained 0.85 per cent, BSE Oil&gas Index advanced 0.76 per cent and BSE IT Index moved 0.73 per cent higher.
Sesa Goa (3.94%), Reliance Communications (3.52%), Cairn India (2.99%), Tata Motors (2.32%) and Siemens (1.97%) were amongst the major Nifty gainers.