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Friday, March 23, 2007
Anand Rathi - Daily Strategist
The NIFTY futures saw a decrease in OI 3.27% with prices closing up indicating that lot of shorts positions were covered market saw major recovery and nifty future sustained above 3800 levels .The discount in nifty futures reduced to minimal indicating that bears covered their positions aggressively. .Looking at this the bulls took fresh positions as market moved up .We feel that till the market sustains above 3850 levels we may not see aggressive short covering and fresh money coming in the market.
The FIIs were huge buyers in futures to the tune of 2176 crores. The PCR is in a range of 1.01 indicating the trend in the market. The volatility has remained in the range of 27.35 levels indicating the positive feel in the market.
Among the Big guns, ONGC saw huge loss of OI with prices going up indicating that fresh short covering coming in the counter along with fresh genuine buying while RELIANCE continued the loss OI and there was a gain in the price as it continued its upward trend since last three sessions.
On the TECH front, INFOSYSTCH,SATYAM, TCS & WIPRO saw decrease in prices showing strength in the markets, while and forced short positions to cover with some fresh longs as well as new longs formed there.
On the other hand the BANKING counters saw a very strong bag with no stock loosing open interest the others gaining it. Also we saw the genuine buying coming in P.S.U banks like S.B.I & P.N.B and across the board prices gaining value .The rest like ICICI BANK & HDFC BANK saw short covering.
In the METALS like the tech sectors across the board buying coupled with short positions were squared in all counters forcing the bears to run for cover with new genuine buying happening there in the sector.
Considering the market data, it suggests the most awaited trend should finally set in the next week , for the same it is advisable to traders to have strict stop losses.
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Caution should be maintained
After posting significant gains of over 870 points in the last four sessions, buying interest may continue on the back of a firm trend. However, caution should be exercised as the market may move in tandem with global indices which are currently prone to higher inflation risk. Investors should also take into account the intra-day volatility. The key Asian indices are trading in the mix currently and are expected to fall further. Among the key local indices, the Nifty could test higher levels at 3900 and 3980 while it has a support at 3820 and a break below this level could see the index test 3740. The Sensex has a likely support at 13000 and may face resistance at 13400.
U.S. indices were little changed on Thursday, as traders questioned whether the Fed would act soon to cut interest rate, with the Dow Jones moved up by 14 points at 12461, while Nasdaq ended on a weak note with a loss of four points at 2452.
The Indian ADRs had a mixed outing on the US bourses. VSNL was the major gainer amongst the ADRs and vaulted over 7%, while Patni computers gained over 4% and ICICI Bank, Satyam, Wipro, Tata Motors, Patni computers and HDFC Bank were up around 1% each. Among the laggards Infosys lost over 1% while Dr Reddy's lab and MTNL closed with the marginal losses.
Crude oil prices moved up, while the Nymex light crude oil for May series went up by $2.08 at $61.69 a barrel. In the commodity segment, the Comex gold shot up by $4.20 to settle at $664.20 an ounce.
Investsmart - Morning Call
Market Grape Wine :
In House :
Nifty at resistance of 3900 & 3942 with support at 3842 & 3818 levels .
Buy : MTNL target 158 s/l 146.5
Sell : Ranbaxy below 332 target 325 s/l 336
Buy : RPL positional target 79 s/l 68.4
Out House :
Sensex at a support of 13108 & 12882 levels with resistance at 12393 &
12453 levels .
Buy : RIL & RelCap
Buy : Aban & SesaGoa
Buy : Polaris & Mphasis
Buy : RComm & Bharti
Buy : IciciBank & Centextile
Buy : IFCI & Praj with stop loss
Buy : Infy & TCS
Dark Horse : Titan ,Sail , Praj , IFCI , IDBI , IDEA , Centextile , Siemens
, Bharti & IciciBank
TGIF : Thank God its Friday : Markets at a break out mode stay invested
with strict stop loss .
Anand Rathi - Daily Technical Note
Nifty and Sensex have exhibited a bullish candlestick.
Technically, one may use the level of 3765 (Nifty) and 13000 (Sensex) as the stop loss level.
Nifty faces resistance at 3950 and Sensex at 13500.
BSE Smallcap and BSE Midcap exhibited bullish candlesticks.
CNX IT has gained ground.
In the Punter’s zone we have a BUY in MARUTI and INDIA CEMENT with a SELL in P.N.B.
In the Technical call section, we have a BUY in KOTAK BANK and SUN PHARMA with a SELL in S.B.I.
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