A morning walk down Dalal Street | Nifty likely to show upmove towards 12,300-12,500 in the coming weeks

The S&P BSE Sensex rallied by over 300 points while the Nifty50 reclaimed 11900 levels on closing basis.

The index rose 2.6 percent in May series to close at 11,945, a fresh record closing high. The S&P BSE Sensex rallied 2.8 percent while NiftyBank rallied 6.7 percent in the same period.

Data suggests that fresh long positions were formed at low base of open interest and good rollovers indicates that most of the same got carried forward to June expiry.

Rollover in Nifty stood at 71.93 percent for June series, which is better than its quarterly average of 69.46 percent. However, the open interest decreased by 4.05 percent on a month-on-month basis.

Going forward, 11500 - 11400 would act as strong support for Nifty; while resistance can be seen around 12500 – 12600 levels.