Daily Strategist Note

The NIFTY futures saw a drop of 1.57% in OI with prices after falling sharply recovered indicating lot of fresh positions added near the support of 4300 levels on the long side indicating that further strength may be seen in the market as lot of short covering may be expected in the market . The Nifty July series futures discount disappeared indicating that lot of short covering happened in the market. The FII were sellers in index futures to the tune of 349 crs and buyers in index options to the tune of 203 crs indicating hedged positions built up by them. The PCR has changed from 1.47 to 1.51 levels indicates some strength may be seen in the market at current levels. IV in the market was 22.10 and HV was 17.89.

Among the Big guns, ONGC saw 3.66 % drop in OI with prices coming up indicating short covering seen in the counter suggesting some strength may be seen in the counter. Whereas RELIANCE saw drop in OI to the tune of 2.13% with prices recovering from lows indicating liquidation of positions in the counter suggesting that some consolidation may be seen in the counter.

In the TECH counters INFOSYSTCH saw rise of 2.81% OI with prices negative indicating that the counter may see further selling pressure emerging thus suggesting some weakness may be seen. TCS, SATYAMCOMP & WIPRO saw rise in OI with prices down indicating that these counters my see further weakness.

In the AUTO counters, M&M saw drop of 0.94% in OI with prices moving up suggesting shorts covering and fresh long positions built up in the counter at current levels suggesting strength may be seen in the stock . TATAMOTORS saw drop in OI with prices up indicating shorts covering their positions and fresh long positions built up in the counter suggesting strength may be seen in the stock.

In the Metal pack, TATASTEEL saw rise of 0.44% in OI with prices coming up indicating long positions built up in the counter suggesting some strength may be seen in the counter. SAIL saw drop of 2.08% in OI with prices coming up indicating shorts covering their positions and fresh long positions built up suggesting strength. HIINDALCO saw drop in OI with prices coming down indicating liquidation of long positions positions in the stock suggesting some profit booking may be seen in the stock. STER saw drop in OI with prices coming down indicating liquidation of long positions in the counter suggesting some profit booking may be seen.

We feel that the volume and built up in OI suggests that market may show some strength in the coming days as market took support of 4300 levels. One should trade with strict stop losses to be adhered too.

STOCKS TO WATCH : JPHYDRO,ICICIBANK & TATASTEEL.