Anand Rathi - Daily Technical Note & Anand Rathi Daily Strategist

Nifty and Sensex have exhibited bearish candlesticks.

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

Nifty faces resistance at 3745 and Sensex at 13400.

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

CNX IT has gained ground.

In the Punter's zone we have a sell in JSW Steel & Ranbaxy and buy in Sail.

In the technical zone we have a sell in Tata Steel & Mcdowell's and buy in Cesc.

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The NIFTY futures saw a rise in OI to the tune 2.19% with prices opened down as global markets melt down but market took support around 3790 levels indicating that market participants are not building aggressive short positions till INFOSYS result come. If market goes below 3750 levels we may see aggressive fresh short positions being built up in the market. The FIIs sold index futures to the tune of 792crs indicating that they are liquidating their long positions as lot of uncertainty prevail in the market. The PCR has come up for1.00 to 1.02 levels indicating some buying support may emerge in the market. The volatility has come up from 26.80 to 27.50 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 4.81% with prices coming down indicating that the fall in market has given strength to bears to have upper hand on the stock indicating further weakness in the counter .whereas RELIANCE saw marginal rise in OI with prices almost flat indicating liquidation of positions by both bulls and bears.

In the TECH front, INFOSYSTCH, TCS saw rise in OI with prices going up indicating speculative long positions being built up in these counters in expectation of good results of INFOSYS. SATYAMCOMP saw fall in OI with prices up indicating short covering happening in the counter. Whereas WIPRO saw rise in OI with fall in prices indicating short positions being built up in this counter indicating further weakness in the counter.

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 rise in OI with prices coming down indicating weakness in the counter.

In the metal pack TATASTEEL, SAIL saw flat OI with prices coming down indicating longs liquidating or profit booking happening in the counter after a sharp rally in prices. HINDALCO& NALCO saw drop in OI with prices coming down indicating long liquidation happening in the counters. STER saw marginal built up in OI with prices coming down indicating liquidation of old positions and built up of fresh positions happening in the counter indicating some buying support may emerge in the counter.

Considering the overall scenario and the markets behavior the market may show direction today as INFOSYS result will come today and their will be sharp movement in the market. If NIFTY futures goes below 3750 levels we may see fresh short positions being built up in the market and further weakness may prevail 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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