Anand Rathi - Daily Strategist & Technical Note - Apr 17

The NIFTY futures saw a rise in OI to the tune 0.16% with prices opened high and closed near to day's high indicating heavy buying by bulls and shorts covering their positions aggressively resulted in narrowing down of discount in NIFTY spot and future from 20 points to 7 points on closing basis which may work in favor of bulls .Market crossed its immediate resistance of 3980 levels which may force bears to cover their positions aggressively.. The FIIs bought index futures to the tune of 355crs indicating that they bought back some of the positions they liquidated on Thursday. The PCR has come up for1.05 to 1.06 levels indicating further strength in the market and buying support may be seen in future .The volatility has come down from 25.70 to 24.65 levels indicating some direction may be seen in the market in coming few days.

Among the Big guns, ONGC saw 3.70% drop in OI with prices coming up indicating shorts covered their positions aggressively and fresh long positions being built up in the counter indicating further strength in the counter whereas RELIANCE saw 1.96% rise in OI with prices rising indicating further strength in the counter may prevail.

In the TECH front, , TCS saw rise in OI with prices rising indicating speculative buying positions being seen in the counter whereas SATYAMCOMP saw rise in OI with prices flat to negative indicating that both bulls and bears were aggressive in the counter and selling pressure emerging in the counter at higher levels indicating some weakness in the counter. Whereas WIPRO and INFOSYSTCH saw fall in OI with rise in prices indicating short covering in the counter and fresh long positions being built up in the counter indicating strength in the counter.

In the BANKING counters, SBIN saw drop in OI with rise in price indicating short covering seen in the counter ICICIBANK saw rise in OI with prices up indicating built up of long positions in this counter indicating strength in the counter. HDFCBANK saw fall in OI with prices coming down indicating profit booking happening in the counter.

In the metal pack TATASTEEL saw drop OI with prices coming up indicating shorts covering their positions and fresh buying emerging in the counter as counter crossed its resistance of 520 levels whereas SAIL saw fall in OI with prices coming up indicating shorts covering their positions .HINDALCO saw fall in OI to the tune of 3.86 % with prices rising indicating that finally bulls got upper hand in the counter which may result in fresh buying emerging in the counter and bears covering their positions aggressively . NALCO saw rise in OI to the tune of 0.16% with prices coming up indicating short covering seen in the counter. STER saw drop in OI with prices coming up indicating short covering seen in the counter and which may further result in some upward price movement in the counter.

Considering the overall scenario and the markets behavior, market has taken positive direction after INFOSYS result which acted as trend decider. Unless market goes below 3900 levels (nifty futures) we may see fresh buying emerging in the market and shorts covering their positions. Traders are advised not to go aggressively short on the market unless important support level of 3900 is breached and any position taken should be with strict stop losses to be adhered too.

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Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 3920 (Nifty) and 13475 (Sensex) as the stop loss level.

Nifty faces resistance at 4050 and Sensex at 13700.

BSE Smallcap and BSE Midcap exhibited a bullish candlestick.

CNX IT has gained ground.

In the Punter's zone we have a BUY in Jindal Stainless , A.C.C. & Tata Motors.

In the Technical call section, we have a BUY in UTV , Bharat Forge & SBI.

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