Anand Rathi - Daily Fundamental Snippets & Strategist - May 25 2007

Finally the citadel seems to have fallen as the major holders of it have booked profits, we mean the F.I.I.'S who were holding this index for a long time. The NIFTY futures saw a increase in OI 4.30 % with prices closing down indicating that lot of shorts positions were built and profit booking happened in a big way led by the foreigners. In the initial stage at the higher end huge profit booking happened. The FIIs were sellers in futures to the tune of 1347 crores of which they sold nifty futures alone to the tune of 965 crs and they bought options worth 95 crs , while they sold stock futures to the tune of 471 crores . The PCR is in a range of 1.45 indicating the trend in the market. The volatility has remained in the range of 21.50 levels indicating the feel in the market.

Among the Big guns, ONGC saw a gain of 1.11 OI with prices going down by 1.57% indicating that fresh shorts being built in the counter while RELIANCE gained OI by 0.34% and the price coming down by 1.65% indicating huge fresh selling taking at the historical high in the counter.

In the TECH front it was a mixed bag, INFOSYS & SATYAM we saw short covering and in TCS & WIPRO saw decrease in prices in the form of short built and fresh selling and showing weakness in the stocks.

On the other hand the BANKING counters we saw huge profit booking be it P.S.U's or PVT banks. Whether the OI was increased or decreased the end result being huge profit booking and selling on the one side coupled with bull offloading with new short positions being built showing total weakness in the sector.

In the METALS there was a mixed bag with TATA STEEL seeing huge profit booking along with HINDALCO & STERLITE. On the flip side we saw covering along with fresh buying in NATIONAL ALUMINIUM.

Considering the market data, it suggests the most awaited AND expected up-trend has been curtailed by profit booking today at the higher end and we need to wait and watch how the market behaves as we should also remember any negative movement here could BOOMERANG the so formed RALLY and we suggested only caution with a negative bias here over the last couple of sessions and should the market go below 4,000 we need to be careful thereon.

Anand Rathi - Daily Fundamental Snippets & Strategist - May 25 2007