The NIFTY futures saw a drop in OI to the tune 2.70% with prices opened high and closing at 4140 levels indicating long positions being built up in the market at lower levels which forced bears to cover their positions .The nifty futures closed at 6 points premium to spot nifty indicating long positions built up in the market and short covering seen in the market. The FII buyers index futures to the tune of 716crs and buyers in index options to the tune of 196crs. The PCR has come up from 1.14to 1.18 indicates some buying may emerge at lower levels in the market. The IV is around 23.95 levels indicating some volatile trading sessions ahead. Among the Big guns, ONGC saw 3.39% drop in OI with prices recovering from lows and closing near day's high indicating some buying may be seen in the counter and shorts covering their positions. Whereas RELIANCE saw 0.53 % drop in OI with prices coming up from lows indicating buying emerging in the counter at lower levels indicating strength in the counter. The counter may see further built up of positions before taking any sharp and directional move which in turn may help to get clue about market's direction. In the TECH front, INOFSYSTCH saw rise in OI with prices coming down indicating selling pressure emerging in these counters suggesting some weakness may be seen in these counters .TCS, SATYAM, WIPRO saw drop in OI with prices coming down and closing near day's low indicating longs liquidating their positions as there was pressure in overall IT pack. In the BANKING counters, all the majors saw buying with OI either going up or down indicating we saw short covering as well long positions built up in the BANKING counters .SBIN saw 11.48% rise in OI with prices closing on higher side indicating fresh money coming in the counter and fresh long positions built up suggesting further strength in the counter. .ICICIBANK saw drop in OI with prices up indicating long positions built up in the counter .HDFCBANK saw drop in OI with prices almost flat indicating selling pressure emerging in the counter at higher levels thus suggesting some weakness may be seen in the counter. In the metal pack TATASTEEL & SAIL saw heavy built up in OI with price closing at day's high indicating huge buying seen in these counter suggesting further strength may be seen in these counters. HINDALCO & NALCO saw drop in OI with prices almost flat indicating liquidation of positions by both bulls and bears. STER saw rise in OI with prices coming up indicating long positions built up in this counter. We feel that the volume and built up in OI suggests that market may show some consolidation before taking any sharp movement on either side. Market may show weakness only if it closes below 4100 levels where we may see fresh short positions built up in the market .Market may show strength if it closes above 4150 levels where we may see fresh long positions built up in the market and short covering in the market .One should trade with strict stop losses to be adhered too.
Daily Strategist
Daily Fundamental Snippets
Daily Tech Note