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 IVRCL & sell in INFOSYS TECHNOLOGY and CENTURY TEXTILES.

In the technical zone we have a buy in GRASIM and ORCHID CHEMICALS &sell in ESCORTS.


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The NIFTY futures saw a rise in OI to the tune 0.87% with prices in a very narrow range indicating that market participants are not building aggressive positions in the market and waiting for INFOSYSTCH result .Market remained in a range of 3820 to 3850 levels showing that breach of any of these levels may result in aggressive built up in positions. If market goes below 3750 levels we may see aggressive fresh short positions being built up in the market. The FIIs bought index futures marginally to the tune of 149crs indicating the activity on their part has also come down. The PCR has come up form 0.97 to 1.00 levels indicating some buying support may emerge in the market. The volatility has come up from 26.50 to 26.80 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 7.01% with prices up indicating long positions being built up in the counter indicating strength in the counter whereas RELIANCE saw drop in OI with prices almost flat indicating liquidation of positions by both bulls and bears.

In the TECH front, INFOSYSTCH, TCS, SATYAMCOMP, WIPRO saw significant rise in OI with prices flat to negative indicating aggressive built up in positions by both bulls and bears.

In the BANKING counters, SBIN saw rise in OI with prices coming down indicating built up of short positions in this counter indicating weakness in the counter. HDFCBANK saw significant built up in OI with prices coming down indicating built up of short positions in the counter. ICICIBANK saw drop in OI with prices almost flat indicating liquidation of positions by both long and short positions.

In the metal pack TATASTEEL, SAIL saw flat OI with prices coming up indicating short covering and built up of fresh long positions indicating strength in the counter whereas SAIL saw significant built up in OI to the tune of 17.17% with prices up 4.20% indicating heavy buying coming in this counter indicating further strength in the counter .HINDALCO, NALCO & STER saw built up in OI with prices coming up significantly indicating fresh money coming in these counters indicating further strength in these counters.

Considering the overall scenario and the markets behavior the market may show some volatility before taking any sharp and directional movement .If it goes below 3800 levels we may see fresh short 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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