THE STRATEGIST ( DF 291206 )

On the last day of the December contract, Nifty futures gained OI to the tune of 4.22% with prices falling by 0.09%. Further Nifty saw average rollover of 76%. On the fourth consecutive day, FIIs were net buyers with a positive inflow of Rs. 247.12 crs (Rs. 731.25 crs). The PCR-OI witnessed a 6 points drop from 1.36 to 1.30 and the PCR Volatility at 0.84, experienced a small increase of 0.03 pts.

Among the Big guns, ONGC saw a 3.46% gain in OI with prices rising by 0.25% and a very healthy rollover at 77%, indicating bullishness in the stock. On the other hand, RELAINCE experienced a built-up in short positions with OI rising by 13.12% and prices falling by 1.45%. The rollover position for RELIANCE was at 76%.

The TECH sector saw a comfortable rollover position with the sector recording an average rollover of around 82% to the NEXT and FAR month contracts. Amongst the TECH majors, INFOSYS saw some built-up of short positions with OI rising by 8.60% with a marginal fall in price of 0.20% and the rollover position, at a comfortable 79%. HCLTECH, TCS and WIPRO closed on a positive note with rise in prices along with healthy rollover rates.

The METAL front experience major rollovers with the average rollover rates standing at 85%. There was bullishness in JINDALSTEEL, BHARATFORGE, JSTAINLESS & SAIL, all recording very healthy rollover rates with rising prices.

On the BANKING front, the BANKNIFTY saw a high 17.34% built-up in OI with a marginal rise in price. Banking major SBI saw a 6.73% rise in OI with prices falling by 1.24% indicating built-up of short positions in the counter. Similarly IDBI, PNB, UTIBANK, IOB & UNIIONBANK experienced significant increase in OI with fall in prices.

The AUTO sector performed very well with many counters closing in blue. ESCORTS, HEROHONDA, ASHOKLEYLAND, TVSMOTORS all experienced increase in OI with significant rise in prices and healthy rollover rates above 80%. We continue to remain bullish on the AUTO sector.

Even though the PCR-OI has fallen marginally and PCR-VOL showing some rise, we feel the markets will be steady.

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Thanks Yash