Anand Rathi - Daily Strategist

The NIFTY futures saw a decrease in OI 0.70% with prices closing at 3643 indicating that lot of shorts positions were maintained as market saw no recovery and nifty future sustained below 3700 levels .The discount in nifty futures remained indicating that bears did not cover their positions aggressively. .Looking at this the bulls ran for cover in their positions as market moved down .We feel that till the market sustains above 3700 levels we may not see aggressive short covering and fresh money coming in the market.

.The FIIs were buyers in futures to the tune of 699 crores. The PCR is in a range of 0.91 indicating the trend in the market. The volatility has remained in the range of 32 levels indicating uncertainty at higher levels.

Among the Big guns, ONGC & RELIANCE saw gain of OI with prices coming down marginally indicating that fresh selling coming in the counter as market came down from high of yesterday.

On the TECH front, TCS, SATYAMCOMP, WIPRO & INFOSYSTCH saw rise in prices showing in spite of weakness in the markets, they held forte and forced short positions to cover with some fresh longs as well as new longs formed there.

On the other hand the BANKING counters saw a mixed bag with some loosing open interest the others gaining it. Also we saw some prices moving up while others saw loosing value .This only makes us realize that un-certainty prevails in the sector.

In the METALS like the tech sectors across the board buying coupled with short covering took place in all counters forcing the bears to cover with new genuine buying coupled with short covering happening there in the sector.

Considering the market data, it suggests the most awaited trend should finally peculate and we could see a clear emergence of view happening next couple of days, for the same it is advisable to traders to have strict stop losses.

Download here