The NIFTY futures saw a increase in OI 2.77 % with prices closing flat almost indicating that lot of shorts positions were covered in the initial stage and at the higher end huge profit booking happened. The FIIs were buyers in futures to the tune of 560 crores of which they bought nifty futures alone to the tune of 75 crs and options worth 636 crs , while they sold stock futures to the tune of 140 crores .The rollover today on the NIFTY was below normal . The PCR is in a range of 1.31 indicating the trend in the market. .The volatility has remained in the range of 26.70 levels indicating the feel in the market.
Among the Big guns, ONGC saw a gain of 2.59 OI with prices going down by 1.44% indicating that fresh shorts being built in the counter along with fresh genuine profit booking while RELIANCE gained OI t% to the tune of 8.39% and the price coming down indicating huge profit taking at the historical high in the counter. Also the rollover in both these counters was 70% plus.
On the TECH front, accept INFOSYSTCH where we saw short covering, SATYAM, TCS & WIPRO saw decrease in prices showing weakness in the markets, and forced long positions to sell with some fresh shorts formed there. This meant the weakening of the dollar took its toll on these stocks and were already taken into account by players. Accept SATYAM, where the roll over was good we saw an average roll over of 70 % in the other TECH majors.
On the other hand the BANKING counters we saw open interest gaining or loosing with gain in value. 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 in the sector .The rest like ICICI BANK & HDFC BANK saw short coverings and prices remaining positive. The average rollover was 80% in the sector.
In the METALS there across the board selling or profit booking be it TATA STEEL, HINDALCO, NALCO, OR STERLITE after the sector had a massive positive movement. The only stock that saw short covering was SAIL. The overall rollover in this sector was averages of 70% accept HINDALCO which was a whooping 93 %.
Considering the market data, it suggests the most awaited expected trend has been curtailed by profit booking today and finally set the decorum in the week for the settlement of un-certainty which means we have ample holidays before we see the new trend emerging at the almost high of the market, for the same it is advisable to traders to have strict stop losses.
Anand Rathi - Daily Strategist - Apr 27