Anand Rathi - Daily Strategist - Mar 20

The NIFTY futures saw a drop in OI 2.05% with prices up by 1.63% indicating that short covering took place as market opened with gap which forced bears to cover their positions as market recovered .we feel that till the market doesn't go below 3600 levels we may not see aggressive short positions built up in the nifty futures and longs liquidating their positions . .The nifty futures discount narrowed indicating aggressive short covering .The FIIs were buyers in the nifty futures to the tune of352.27 crs .The PCR has come up from 0.89 to 0.91 levels indicating some support in the market .The volatility has come down from 31.70 to 30.85 levels indicating some buying support in the market.

Among the Big guns, ONGC saw drop in OI to the tune of 2.68% with prices coming up by 1.70% indicating short positions are covering their positions in the counter as the counter moved up showing much of strength whereas RELIANCE too saw drop of OI to the tune of 1.85 % with prices coming up 1.03 % indicating that the counter saw lot of short covering in the counter.

On the TECH front, TCS, , WIPRO,INFOSYSTCH saw drop of OI with sharp rise in prices indicating lot of short covering seen in these counters performing in line with market whereas SATYAMCOMP saw rise in OI with prices almost flat indicating that both bulls and bears are aggressive in the counter.

The BANKING counters saw OI decrease with prices up indicating that short covering in the major counters SBIN,HDFCBANK,BANKINDIA finally bears covered positions ir-respective of whether P.S.U'S or P.V.T banks. ICICIBANK saw marginal rise in OI with prices 1.64 % indicating that apart from short covering fresh buying happening in the counter.

The metals across the board TATASTEEL, HINDALCO ,STER Saw rise in OI with price flat to negative indicating that both buyers and sellers were aggressive in these counters indicating selling pressure prevailing in these counters, whereas SAIL ,JSWSTEEL saw fall in OI with rise in price indicating that their was heavy short covering in these counters.

Considering the overall scenario and the markets recovery the market may move up today and we would see bears running for cover if the market sustains above the 3630 level .Traders are advised not to go aggressively short on the market unless important support level of 3600 is breached and any position taken today should be with strict stop losses to be adhered too.

Download here