Nifty Support Seen at 4932

After making a low of 4798, the Nifty has recovered by 3% and this trend may continue if it holds at 4932. Nifty August futures have seen a continuous addition of short positions to the tune of 70 lakh shares in the recent fall and any covering on this front may lead to further upsides.  Looking at the current options data, interest has emerged in the 4900 put strike as well where over a million shares have been added in the past couple of sessions, indicating a bullish undertone to the expiry. However, if the Nifty is unable to hold this immediate put base of 4900, the closure of positions in this strike can drag the index down towards 4780 levels again.
Looking ahead, the September series is likely to take further cues from crucial announcements from the forthcoming Jackson Hole conference in the US on August 26 and FOMC meeting on August 30.
The selling pressure in private banking stocks had kept Bank Nifty subdued. The index has major support at 9280 but 9900 would remain an immediate resistance on upsides.