Anand Rathi - Daily Strategist

Nifty futures gained OI to the tune of 5.61% with prices coming down indicating longs liquidating their positions as market couldn't sustain at higher level market at higher levels with nifty futures not ready to move above 4100 levels. If nifty sustains below 4040 levels we may see fresh short positions being formed in nifty futures .The nifty may show real strength once it crosses 4100 marks and fresh buying may come around those levels. The FIIs bought futures to the tune 77 crs. The PCR has come down from 1.25 to 1.18 levels which indicates weakness in the market.

Among the Big guns ONGC saw significant built up in OI to the tune of 1.98 %with prices coming down around 2.07% indicating that bears were aggressive as counter came to its short term support level. RELIANCE saw built up in OI to the tune of 1.37 % with prices up 0.37% indicating short covering in the counter on the last day of the settlement.

On the TECH front, ,TCS, saw loss in OI with prices coming up indicating short positions covered in the counter whereas INFOSYSTCH ,WIPRO,SATYAMCOMP saw a gain in OI with prices coming down in indicating longs liquidating their positions performing in line with the market.

On the Metal front the massacre continued, we saw fall in OI with prices coming down in both the majors HINDALCO and TATASTEEL indicating fresh selling coming in the counters which forced bulls to cover their positions indicating weakness in these counters. SAIL saw built up of significant OI with prices down as well marginally indicating their was selling pressure at higher levels.

In the BANKING arena like the metals there was not respite and they were hammered to pulp. it was across the board be it private or public sector all had their fair share of hammering as both bull liquidation coupled with bear hammering had its effect simultaneously.

However in spite the last day of the settlement we did not see a surprise spring in the market and no recovery came. For today we see a pull back but the view would change either sides if the indices break important levels for either to gain advantage , trade with strict stop losses and caution.

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Thanks Yash