Anand Rathi - Daily Strategist - Apr 10

The NIFTY futures saw a rise in OI 0.51% with prices positive indicating that as market recovered shorts covered their positions aggressively and fresh long positions built up in the market as market crossed its immediate resistance level of 3800 .If market goes below 3750 levels we may see fresh short positions being built up in the. The FIIs bought index futures to the tune of 430crs indicating long positions built up by them as well as buyers in index options indicating hedged positions built up by them. The PCR has come up form 0.86 to 0.95 levels indicating strength in the market. The volatility has come up from 26.80 to 26.90 levels indicating volatile trading sessions ahead as historical volatility is also on higher side.

Among the Big guns, ONGC saw rise in OI to the tune of 0.44% with prices up indicating heavy short covering in the counter and fresh buying emerging in the counter indicating strength in the counter whereas RELIANCE saw rise of OI to the tune of 0.16 % with prices up performing in line with the market.

In the TECH front, INFOSYSTCH, TCS, SATYAMCOMP, WIPRO saw drop in OI with prices up indicating shorts covered their positions and fresh buying emerging in IT pack indicating strength in the sector.

In the BANKING counters, SBIN, HDFCBANK, ICICIBANK saw rise in OI with prices going up indicating that long positions built up in these counters indicating strength in these counters.

In the metal pack TATASTEEL, SAIL saw fresh built up in OI with rise in price indicating fresh buying emerging in the counter indicating further strength in these counters. HINDALCO saw drop in OI with prices up indicating short covering in the counter whereas STER saw rise in OI with prices up indicating some fresh buying emerging in the counter indicating strength in the counter.

Considering the overall scenario and the markets behavior the market may show some volatility before taking any sharp and directional movement .If it remains above 3800 levels we may see fresh long positions being built up in the market. Traders are advised not to go aggressively short on the market unless important support level of 3750 is breached and any position taken today should be with strict stop losses to be adhered too.

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