Anand Rathi - Daily Strategist

The NIFTY futures saw a rise in OI 8.15% with prices showing lot of volatility finally took support of 3850 levels and closed at the end of session at 3953.95 levels marginally positive. The nifty futures closed at 10 points premium to spot nifty indicating that the sharp recovery led to heavy short covering in futures .The whole day saw a lot of volatility with bulls and bears both becoming aggressive as indicated by price movement and heavy volumes in both the nifty futures and F&O market as a whole . The FIIs were a seller in nifty futures to the tune of 1036 crs The PCR has come down from 1.44 to 1.35 levels again indicating weakness in the market .The volatility is in a range of 27 indicating volatile trading sessions ahead.

Among the Big guns, ONGC saw OI flat with prices going up indicating that both bulls and bears were not aggressive in the counter as market became very volatile & RELIANCE saw OI coming up significantly to the tune of 4.48 with prices after showing lot of volatility closing above 1400 levels which is positive for the counter if market recovers this counter may gain quicker.

On the TECH front, we saw OI rising in TCS & SATYAMCOMP with prices goinh up indicating long positions are formed in these counters indicating strength in these counters whereas WIPRO & INFOSYSTCH saw OI rising with fall in prices indicating short positions are formed in these counters indicating weakness in these counters..
The BANKING counter lead by SBIN, BANKBARODA,BANKNIDIA saw OI coming down and prices going up indicating short covering in these counters whereas ICICIBANK saw fall in OI with prcies flat to negative indicating liquidation of positions by both bulls and bears ,HDFCBANK saw built up of short positions.

In the METALS TATASTEE, HINDALCO, STER,JSWSTEEL saw fresh buying coming in these counters indicating further strength in metal pack, Considering the overall scenario and the markets being volatile and wobbly, we feel one should hedge the positions as uncertainties prevail as budget is near . Traders are advised to place strict stop losses.

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Thanks Yash