Anand Rathi - Daily Strategist

The NIFTY futures saw a increase in OI 3.68% 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 does not sustains above 3750 levels we may not see aggressive short covering and fresh money coming in the market as we have been mentioning day in and day out over the last week or so.

The FIIs were hug sellers in futures to the tune of 1122 crores of which they sold nifty futures alone to the tune of 1432crs and bought options worth 420 crs .The PCR is in a range of 00.87 indicating the trend in the market. .The volatility has remained in the range of 30 levels indicating the negative feel in the market.

Among the Big guns, ONGC saw huge gain of 22.43 OI with prices going down by 6.22% indicating that fresh shorts being built in the counter along with fresh genuine selling while RELIANCE as well continued gain of OI and there was a loss in the price as it continued its negative trend since last week.

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 negative expected trend has happened and finally set the decorum in the 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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