Futures & Options Strategy

Nifty futures lose OI to the tune of 8.50% with index closing positive. Market was range bound during today's session and given a strong close on the day's high. Market was moving in a very narrow range of 30 points during whole day. Today's closing has given a sign of strength in the market. At the end, Nifty closes positive and given a close above 4250 levels, which was very important levels for the market. Nifty futures close with a discount of 30 points, which indicates profit booking in the market. The FIIs sold index futures to the tune of Rs. 765 Crs and sold stock futures to the tune of Rs. 235 Crs. The PCR has come up from 1.40 to 1.42 levels, which indicate strength continuing in the market. The volatility has come down from 25.65 to 26.45 levels indicating volatility expected by market participants.

Among the Big guns ONGC loses OI to the tune of 7.00% with prices going up during the day, indicating some strength in the counter and buying at lower levels, however counter has also seen profit booking on higher levels. RELIANCE loses OI to the tune of 7.50% with prices closing positive indicating strength in the counter, However counter witnessed short covering by bears in the counter on higher levels during today's session.

On the TECH front, TCS, INFOSYSTCH, WIPRO & SATYAMCOMP loses OI with decline in price indicating profit booking and liquidation in the counters. Counters have given a weak close that is almost on day's low indicating further weakness in the counters. Counters are not showing any strength during today's session, remain dull, and at last closed negative. From last few trading days, counters are not giving any significant move in either direction, which is due to the appreciation of rupee. Now the market participants are losing there interest in the counters.

On the Metal front, TATASTEEL & SAIL loses OI with decline in price indicating liquidation in the counter. At the end of the counters closed negative. HINDALCO & NATIONALUM loses OI with gain in prices indicating strength in the counter. Counters have witnessed short covering by bears on higher levels and given a strong close during today's session.

In the BANKING arena, SBIN, HDFCBANK & ICICIBANK loses OI with decrease in prices, indicating weakness in the counters. Counters have seen liquidation of long position on higher levels during today's session. BANKBARODA gains OI with rise in price indicating strength in the counter. Counter has given a close almost on the day's high and seen fresh buying on lower levels.

During today's session Nifty futures has seen strong buying on lower levels near 4220 levels and given a close just below the important level of 4250. Overall nifty has strong support around 4250 levels. If nifty given a close below 4200 than we can see fresh short position in the market. One should take hedged positions in the market to minimize the risk.