Anand Rathi - Daily Strategist

The NIFTY futures saw a increase in OI 1.29% with prices closing down as expected indicating that lot of shorts positions were built and blood was seen on the street. The discount in nifty futures increased indicating that bears aggressively cornered the bulls and got them liquidated .We feel that till the market sustains above 3750 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 291 crores .The PCR is in a range of 00.93 indicating the trend in the market. The volatility has remained in the range of 32.95 levels indicating the negative 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 loss in the price as it continued its negative trend since last three sessions.

On the TECH front, INFOSYSTCH,SATYAM, TCS & WIPRO saw decrease in prices showing weakness in the markets, and forced long positions to sell with some fresh shorts formed there.

On the other hand the BANKING counters saw open interest gaining with loss in value. Also we saw the genuine selling coming in P.S.U banks like S.B.I & P.N.B and across the board prices loosing value in the sector .The rest like ICICI BANK & HDFC BANK saw short positions being built and fresh bull liquidations.

In the METALS across the board selling coupled with short positions were formed in all counters forcing the bulls to run for cover with new genuine selling happening there in the sector.

Considering the market data, it suggests the most awaited trend has happened and finally set the decorum in the next week for the new settlement and the new financial year , for the same it is advisable to traders to have strict stop losses.

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