Anand Rathi - Daily Strategist

The NIFTY futures saw a rise in OI 2.42% with prices positive indicating that as market opened high and not ready to go below 360 levels weak shorts covered their positions and forced price to remain above 3650 levels. We feel that till the market doesn't go below 3650 levels we may not see aggressive short positions in the nifty futures and longs liquidating their positions. The FIIs bought index futures to the tune of 361crs indicating short covering by them whereas buyers in index options indicating hedged positions built up by them. The PCR has come down form 0.87 to 0.85 levels indicating some buying support emerging in the market. The volatility has come down from 28.65 to 27.50 levels indicating some buying support may emerge at lower levels in the market.

Among the Big guns, ONGC saw rise in OI to the tune of 7.09% with prices marginally positive to the tune of 0.45% indicating built up of long positions and short positions aggressively indicating sharp movement in the counter on either direction whereas RELIANCE saw rise of OI to the tune of 1.80 % with prices positive indicating that shorts covered their positions and fresh positions built up in the counter indicating strength in the counter.

In the TECH front, INFOSYSTCH, WIPRO saw rise of OI with rise in prices indicating lot of long positions being built up in these counters INFOSYSTCH saw built up on the expectation of results. The built up in these counters indicates strength .SATYAMCOMP saw rise in OI with prices coming down indicating built up of shorts indicating weakness in the counter .TCS saw rise in OI with prices almost flat indicating sharp movement in the counter.

In the BANKING counters, SBIN, HDFCBANK saw rise in OI with prices going up indicating that long positions built up in these counters indicating strength in these counters whereas ICICIBANK saw fall in OI with prices up indicating short covering in the counter.

In the metal pack TATASTEEL, Saw fall in OI with price positive indicating shorts covering in their positions in the counter SAIL saw fresh built up in OI with rise in price indicating fresh buying emerging in the counter indicating further strength in the counter. HINDALCO&NALCO saw fresh built up in long positions indicating strength in the counter whereas STER saw loss in e OI with prices up significantly indicating heavy short covering in this counter which may last for some time as lot of short positions are pending in this counter.

Considering the overall scenario and the markets behavior the market may show some volatility before taking any sharp and directional movement .If it remains below 3650 levels we may see fresh short positions being built up in the market. Traders are advised not to go aggressively short on the market unless important support level of 3650 is breached and any position taken today should be with strict stop losses to be adhered too.

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