Anand Rathi - Daily Technical Note & Daily Strategist

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4080 (Nifty) and 13975 (Sensex) as the stop loss level.

Nifty faces resistance at 4185 and Sensex at 14225.

BSE Smallcap and BSE Midcap exhibited a bullish candlestick.

CNX IT has gained ground.

In the Punter's zone we have a BUY in ARVIND MILLS , SRF & TATA STEEL.

In the Technical call section, we have a BUY in 3I INFOTECH , HIND CONSTRUCTION & INDIA GLYCOL.



The NIFTY futures saw a increase in OI 0.2 % with prices closing up indicating that lot of shorts positions were covered in the initial stage and at the higher end huge profit booking happened. The FIIs were buyers in futures to the tune of 654 crores of which they bought nifty futures alone to the tune of 534 crs and options worth 83 crs , while they bought stock futures to the tune of 31 crores . The PCR is in a range of 1.20 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 2.28 OI with prices going up 0.60% indicating that fresh shorts being covered in the counter while RELIANCE lost OI by 1.83% and the price coming up by 4.17% indicating huge fresh buying taking at the historical high in the counter.

In the TECH front, INFOSYS & TCS we saw short covering, SATYAM we saw fresh buying & WIPRO saw decrease in prices in the form of profit booking showing weakness in the stock. Overall we saw an impact of a weakening RUPEE making tech stocks more attractive.

On the other hand the BANKING counters we saw open interest gaining or loosing with gain in value. Also we saw the genuine buying coming in P.S.U banks like S.B.I & P.N.B and across the board prices gaining value in the sector. The rest like ICICI BANK & HDFC BANK saw short coverings and prices remaining positive. The new flavor was institutional stocks IFCI , IDFC & IDBI gaining huge values.

In the METALS there across the board buying be it TATA STEEL , STERLITE or SAIL after the sector had a massive negative movement. The only stock that saw selling or profit booking was HINDALCO.

Considering the market data, it suggests the most awaited expected 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 suggest only caution with a positive bias here.

Anand Rathi - Daily Technical Note & Daily Strategist - May 4 2007