Anand Rathi - Daily Technical Note & Anand Rathi Daily Strategist

Nifty and Sensex have exhibited narrow candlesticks.

Technically, one may use the level of 3745 (Nifty) and 12900 (Sensex) as the stop loss level.

Nifty faces resistance at 3900 and Sensex at 13400.

BSE Smallcap and BSE Midcap Indices have exhibited a bullish candlestick.

CNX IT has lost ground.

In the Punter's zone we have a buy in Mind Tree , Biocon & Reliance Industries.

In the technical zone we have a buy in Indian Hotels , Balaji Tele & Torrent Power.

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The NIFTY futures saw a decrease in OI 1.23% with prices closing up as expected indicating that lot of shorts positions were cut. The discount in nifty futures decreased indicating that bears aggressively covered & the bulls got them cornered .We feel that till the market sustains above 3750 levels we see aggressive short covering and fresh money coming in the market only after the first major result shall set the trend .The FIIs were buyers in futures to the tune of 112 crores of which they bought nifty futures alone to the tune of 114crs and sold options worth 59.54 crs .The PCR is in a range of 00.97 indicating the trend in the market. .The volatility has remained in the range of 26.50 levels indicating the feel in the market.

Among the Big guns, ONGC saw a gain of 4.17 OI with prices going up by 0.34% indicating that fresh longs being built in the counter along with fresh genuine buying while RELIANCE lost OI and the price was unchanged.

On the TECH front, INFOSYSTCH, SATYAM, TCS & WIPRO saw decrease in prices showing weakness in the markets, and forced long positions to sell with some fresh shorts formed there. This may be the results taken into account by players.

On the other hand the BANKING counters saw open interest gaining with loss in value. Also we saw the genuine selling coming in P.S.U banks like S.B.I & P.N.B and across the board prices loosing value in the sector .The rest like ICICI BANK & HDFC BANK saw short positions being built and fresh bull liquidations.

In the METALS there was a mixed bag with some gaining and the others loosing value clearly indicating the un-clear feeling there in the sector?

Considering the market data, it suggests the most awaited expected trend has shall only happen after the INFOSYS result and finally set the decorum in the week for the settlement and the new financial year , for the same it is advisable to traders to have strict stop losses.

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