Keep watch on 4170 mark

The market must cross the 4170 level decisively and sustain above it, to maintain the uptrend. Failure to do so could lead to a deeper correction, according to analysts.

The Nifty has a support at 4140 and 4100. The operators exited all long positions on Friday, well before 4,190 was broken as the markets became weak technically.

As expected, the market failed to sustain above 4200 as call writing at 4200 and 4300 accounted for almost 50 per cent of the total open interest in call options.

There was an addition of 25.6 million shares in Nifty calls OI and 21.87 million shares in put options. The put call ratio went further down to 1.24 from 1.31, indicating more short positions.

There are indications that Nifty may break 4200 next week and go up to 4250-4300 levels. The open interest in several Sensex and Nifty stocks was seen moving up, with a rise in prices. Reliance added OI of 21.81 lakh shares, with stock moving up by 1.25 per cent, indicating long positions. The OI in Larsen & Toubro has increased by 3.10 lakh shares, while the stock moved up by 3.10 per cent. ICICI Bank (+20.63 lakh) and ONGC (+16.29 lakh) witnessed an increase in the OI, with a rise in the price.