June futures face resistance at 4300

MUMBAI: The Nifty June 2007 futures settled at 4,278.10, a discount of 17.70 points compared to the spot closing of 4,295.80. It had surged to an all time high above 4,300 mark at 4,325.

“The call writing at 4,300 was not that great. This resistance must be breached soon,” said Siddarth Bhamre, fund manager- derivatives at Angel Broking. In a call option, the buyer gets the right, but not the obligation, to buy the underlying instrument at a pre-determined price on a pre-determined date. So, when Bhamre says there was not much call writing at 4,300 levels, it means one is not expected to see much selling at 4,300 levels.

Market-wide rollovers were in the range of 70% and Nifty rollovers were at around 75%. Rollovers in total open interest were also high. Bhamre added while Nifty had been hitting new highs, Sensex has been lagging behind because of some laggards like HLL.

However, despite this the BSE Index could well touch new high on Friday, if global markets were good, he said.  The turnover picked-up in the wake of derivatives expiry on Thursday. Turnover vaulted to Rs 52,950.90 crore on NSE’s F&O segment from Rs 50,481.89 on Wednesday. It was Rs 43,290.08 crore on Tuesday.