Anand Rathi - Daily Strategist

The NIFTY futures saw a decrease in OI 3.27% with prices closing up indicating that lot of shorts positions were covered market saw major recovery and nifty future sustained above 3800 levels .The discount in nifty futures reduced to minimal indicating that bears covered their positions aggressively. .Looking at this the bulls took fresh positions as market moved up .We feel that till the market sustains above 3850 levels we may not see aggressive short covering and fresh money coming in the market.

The FIIs were huge buyers in futures to the tune of 2176 crores. The PCR is in a range of 1.01 indicating the trend in the market. The volatility has remained in the range of 27.35 levels indicating the positive feel in the market.



Among the Big guns, ONGC saw huge loss of OI with prices going up indicating that fresh short covering coming in the counter along with fresh genuine buying while RELIANCE continued the loss OI and there was a gain in the price as it continued its upward trend since last three sessions.



On the TECH front, INFOSYSTCH,SATYAM, TCS & WIPRO saw decrease in prices showing strength in the markets, while 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 very strong bag with no stock loosing open interest the others gaining it. Also we saw the genuine buying coming in P.S.U banks like S.B.I & P.N.B and across the board prices gaining value .The rest like ICICI BANK & HDFC BANK saw short covering.


In the METALS like the tech sectors across the board buying coupled with short positions were squared in all counters forcing the bears to run for cover with new genuine buying happening there in the sector.


Considering the market data, it suggests the most awaited trend should finally set in the next week , for the same it is advisable to traders to have strict stop losses.

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