The NIFTY futures saw a gain of 4.06 % in OI with prices coming up and closing high indicating long positions built up in the market thus suggesting if the follow up continues then we may see fresh built up in positions with bulls more aggressive and forcing weak shorts to cover their positions .The nifty June series futures closed at 1 points discount to spot nifty suggesting aggressive short covering seen in the market. Market if it sustains above 4320 levels then we may see further long positions built up in the market and shorts covering their positions. The FII were sellers in index futures to the tune of 77 crs and buyers in index options to the tune of 174 crs. The PCR has come up from 1.60 to 1.52 indicates some consolidation may be seen in the market.
IV in the market was 22.20 and HV was 22.50.
Among the Big guns, ONGC saw 1.06 % drop in OI with prices coming up indicating short covering seen in the counter suggesting the counter may show strength. Whereas RELIANCE saw gain in OI with prices closing up indicating buying spree emerging in the counter suggesting further strength in the counter.
In the TECH counters INFOSYSTCH & WIPRO saw drop in OI with prices going up indicating that the counter saw short covering their positions aggressively suggesting that we may see further short positions being covered. TCS saw rise in OI with prices up indicating long positions built up in these counters suggesting further strength. SATYAMCOMP saw gain in OI with prices down indicating fresh short positions built up in this counter suggesting weakness in the counter.
In the BANKING counters, SBIN saw rise in OI with prices up indicating fresh money coming in the counter with buying spree suggesting further strength in the counter. ICICIBANK & HDFCABKN saw rise in OI with prices remaining in a range suggesting some profit booking may be seen in the counter.
In the Metal pack, TATASTEEL & SAIL saw rise in OI with prices facing resistance at higher levels indicating fresh short positions built up in the counter thus suggesting some weakness may be seen in the counter. HINDALCO saw gain in OI with prices going down indicating built up of short positions in the counter suggesting further weakness in the counter. STER saw gain in OI with prices closing near day's high suggesting fresh long positions built up in the counter suggesting strength in the counter. NALCO saw drop in OI with prices closing up indicating buying emerging in the counter suggesting further strength in the counter.
We feel that the volume and built up in OI suggests that market may show some strength if it remains above 4280 levels suggesting one should avoid taking aggressive positions in the market and should hedge the positions appropriately to avoid any unexpected movement in the market. One should trade with strict stop losses to be adhered too.
Stocks to watch: BOMBAYDYEING, AIAENG, BEML, IFCI (Looking positive).