Anand Rathi - Daily Strategist

The NIFTY futures saw a rise in OI 16% with prices up by 0.25% indicating that both bulls and bears were aggressive in building their positions as market showing volatility and not giving clear directions. .We feel that till the market doesn't go above 3850 levels we may not see aggressive short covering in the nifty futures and longs building fresh positions in the market. The nifty futures showed a rollover of 70 % i.e. is below average rollover of 75 % indicating less positions built up in April contract as compared to previous contracts. The FIIs sold index futures marginally to the tune of 15.15 crs whereas heavy buyers in index options indicating hedged positions built up by them against their long positions and investments in cash market .The PCR has remained unchanged to 0.93 levels indicating some consolidation may take place here before any sharp movemtn in the market ..The volatility has come down from 32.95 to 29.30 levels indicating some buying support in the market.

Among the Big guns, ONGC saw rise in OI to the tune of 0.23% with prices positive to the tune of 1.18% indicating shorts covering there positions and fresh buying happening in the counter indicating strength in the counter . whereas RELIANCE saw drop of OI to the tune of 1.26 % with prices positive indicating short covering in the counter.

On the TECH front, TCS, SATYAMCOMP saw fall of OI with rise in prices indicating lot of short covering are seen in these counters indicating further short covering may result in rise in prices in these counters whereas INFOSYSTCH saw rise in OI with prices almost flat indicating that both bulls and bears are aggressive in the counter .WIPRO saw rise in OI with rise in price indicating fresh buying happening in the counter.

In the BANKING counters, BIN saw rise in OI with rise in prices indicating that longs are building positions in this counter , HDFCBANK, & ICICIBANK saw rise in OI with fall in price indicating selling pressure in these counters indicating weakness in these counters may prevail.

In the metal pack TATASTEEL, Saw fall in OI with price negative indicating longs liquidation in these counters whereas heavy short positions buit up in HINDALCO and STER indicating weakness in these counters.

Considering the overall scenario and the markets behavior the market may show some consolidation before taking any sharp movement on either side .Traders are advised not to go aggressively short on the market unless important support level of 3750 is breached and any position taken today should be with strict stop losses to be adhered too.

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