Futures & Options Strategy

Nifty futures gains OI to the tune of 2.67% with index closing positive. Market was range bound during today's session and given a strong close near to the day's high. Market was moving in a 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 4400 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. 845 Crs and sold stock futures to the tune of Rs. 95 Crs. The PCR has come down from 1.51 to 1.54 levels, which indicate strength continuing in the market. The volatility has come down to 22.30 levels indicating volatility expected by market participants.

Among the Big guns ONGC loses OI to the tune of 0.26% with prices going up during the day, indicating short covering 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 loses marginal OI to the tune of 0.10% with prices closing positive indicating strength in the counters however, counter also witnessed profit booking in the counter and counter witnessed liquidation by bulls in the counter on higher levels during today's session.

On the TECH front, INFOSYSTCH & SATYAMCOMP gains OI with rise in prices indicating strength in the counter. The counters have given a positive close. However, IT packs have also witnessed profit booking on higher levels. TCS and SATYAMCOMP loses OI with rise in price indicating short covering in the counter on higher levels. Counters are showing strength and which is a good sign for the market but one should take care of the results of the INFOSYS, which is coming on 11th. This can be a trigger for the market and can decide the movement of the entire IT 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 buying on current levels indicating further strength in the counters. However, counters have also witnessed profit booking during today's session

In the BANKING arena, SBIN, HDFCBANK & BANKBARODA gains OI with increase in prices, indicating strength in the counters. Counters have fresh long positions during today's session. ICICIBANK gains OI with decline in price indicating weakness in the counter.

During today's session Nifty futures has seen strong buying on lower levels near 4400 levels and given a strong close above the important level of 4400. Overall nifty has strong support around levels. If nifty given a close below 4350 than we can see fresh short position in the market. One should take hedged positions in the market to minimize the risk.