Anand Rathi - Daily Technical Note & Anand Rathi Daily Strategist & Anagram Daily Call

Nifty and Sensex have exhibited a downward bar reversal.

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 bearish candlestick.

CNX IT has lost ground.

In the Punter's zone we have a BUY in Crompton Greaves & SELL in State Bank and TCS.

In the Technical call section, we have a BUY in Glenmark Pharma & SELL in Tata Motors and Tata Steel.

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The NIFTY futures saw a increase in OI 3.40% with prices closing down indicating that lot of shorts positions were built. The discount in nifty futures decreased indicating that bears aggressively covered & the bulls got them cornered , but at the higher end the market could not hold its weight and tumbled as profits were taken .We feel that till the market sustains above 3925 levels we shall see aggressive short covering and fresh money coming in the market .The FIIs were buyers in futures to the tune of 656 crores of which they bought nifty futures alone to the tune of 398 crs and options worth 362 crs , while they sold stock futures to the tune of 106 crores .The PCR is in a range of 1.12 indicating the trend in the market. .The volatility has remained in the range of 23.90 levels indicating the feel in the market.

Among the Big guns, ONGC saw a loss of 1.01 OI with prices going down by 0.73% indicating that fresh shorts being built in the counter along with fresh genuine profit booking while RELIANCE lost OI and the price was moving up indicating short covering at the historical high in the counter.

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 meant that TCS results were already taken into account by players.

On the other hand the BANKING counters we saw open interest gaining with loss in value in P.S.U majors. 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 cut and prices remaining positive.

In the METALS there across the board selling or profit booking be it TATA STEEL , HINDALCO , NALCO , JSW STEEL OR STERLITE after the sector had a massive positive run over the last couple of days.

Considering the market data, it suggests the most awaited expected trend has been curtailed by profit booking today and finally set the decorum in the week for the settlement of un-certainty, for the same it is advisable to traders to have strict stop losses.

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