The NIFTY futures saw a drop in OI to the tune 0.26% with prices up indicating long positions being built up in the market but at higher levels we saw selling pressure emerging in the market due to profit booking by longs and fresh short positions being built up in the nifty futures .The discount in NIFTY spot and future was around 8 points which was almost same on last day indicating that both bulls and bears were aggressive. The FIIs bought index futures to the tune of 478 crs and index options to the tune of 239 crs indicating hedged positions built by them. The PCR has remained unchanged to 1.12 levels indicating buying support may emerge in the market. The volatility has come down from 24.65 to 23.90 levels indicating some direction may be seen in the market in coming few days.
Among the Big guns, ONGC saw 0.15% rise in OI with prices coming up indicating long positions being built up in the counter indicating strength in the counter whereas RELIANCE saw 4.33% drop in OI with prices rising indicating shorts covering there positions as counter sustaining at higher levels indicating strength in the counter.
In the TECH front, INOFSYSTCH, TCS saw drop in OI to the tune of 0.33 with prices flat to negative indicating profit booking happening in the counter and fresh built up of long positions .SATAYMCOMP & WIPRO saw drop in OI with rise in price indicating short covering seen in the counter and long positions being built up in the counter indicating further strength in the counter.
In the BANKING counters, SBIN, ICICIBANK saw RISE in OI with rise in price indicating long positions built up in the counter and short covering seen in the counter indicating further strength in the counter HDFCBANK saw drop in OI with prices flat to negative indicating short covering seen in the counter.
In the metal pack TATASTEEL saw drop rise in price indicating short positions being built up in the counter and if counter sustains below 500 levels we may see further pressure being built up in the counter ,SAIL saw flat OI with rise in price indicating short covering seen in the counter and fresh buying emerging in the counter .HINDALCO & STER saw drop in OI with rise in price indicating short covering seen in the counter and fresh buying emerging in the counter indicating further strength in these counters
Considering the overall scenario and the markets behavior, market showing volatility as selling pressure emerging at higher levels and profit booking seen in the market. 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.
Anand Rathi - Daily Strategist & Technical Note