Nifty likely to be in range of 4700-5200 levels:

The Nifty future on Wednesday closed positive at 5029 levels led by short-covering and long build-ups. The Nifty touched 5170 levels in the previous week and tumbled down from those levels with increasing volumes. 

In this week, the Nifty witnessed a gap down opening on Monday and has been trading in narrow range of 4920-5055 with high level of volatility suggesting that both bulls and bears are fighting to get their grip on the market. 

On Wednesday, the Nifty future found support at 4940-4900 levels. If it fails to hold these levels, selling pressure may get intensified towards 4840-4800 levels. There will be immediate resistance at around 5100 levels where fresh call writing is seen. If these levels are sustained, the market may witness further short-covering rally towards 5150-5180 levels amid unwinding in call options. In the options segment, the highest call open interest is at 5200 strike price while maximum put OI is at 4700 followed by 4800 strike prices. This indicates that the broader range for the market is likely to be at 4700-5200 in coming trading sessions. 

The PCR OI has been trading above 1.25 in this expiry which shows heavy put writing in the market. Implied volatilities are also trading above 30 levels indicating markets are in volatile mode. Generally, the premiums of options are high in highly volatile market and so writing the options are preferred. 

The market witnessed short-covering and marginal long build-up in IT, metal, oil & gas and banking sectors while marginal selling pressure was seen in capital goods sector.