Futures & Options Strategy

Nifty futures gain OI to the tune of 1.89% 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 range of 50 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 14 points, which indicates profit booking in the market. The FIIs bought index futures to the tune of Rs. 322.66 Crs and sold stock futures to the tune of Rs. 392.35 Crs. The PCR has come up from 1.41 to 1.44 levels, which indicate strength continuing in the market. The volatility has gone up from 32.40 to 36.25 levels indicating volatility expected by market participants.

Among the Big guns ONGC gains OI to the tune of 4.00% with prices going up during the day, indicating strength in the counter and strong buying at lower levels, at last counter has given strong support to the market to get sustain on higher levels. RELIANCE gains OI to the tune of 4.50% with prices closing negative indicating liquidation and profit booking in the counter, however counter witnessed liquidation by bulls in the counter on higher levels during today's session.

On the TECH front, TCS, INFOSYSTCH & WIPRO gains 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 have shown strength in the early morning as the Dollar comes up but later on investors has liquidated their positions indicating that the uncertainty prevailing in the market regarding the Exchange rate. SATYAMCOMP gains OI with gain in price indicating strength in the counter, counter has seen strong buying on lower levels and can outperform the sector.

On the Metal front, TATASTEEL, SAIL, HINDALCO & NATIONALUM gains OI with rise in price indicating strength in the counters. At the end of the all, the counters closed positive. Counters have shown strong buying on lower levels. Counters have also witnessed short covering by bears on higher levels and given a strong close during today's session.

In the BANKING arena, SBIN & HDFCBANK loses OI with increase in prices, indicating strength in the counters. Counters have seen short covering by bears on higher levels. ICICIBANK & BANKBARODA loses OI with gain in price indicating liquidation of long positions in the counters.

During today's session Nifty futures has seen strong buying on lower levels near 4250 levels and given a strong close above 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.