Daily Strategist Note

The NIFTY futures saw a gain in OI to the 0.35% with prices coming down and closing dear day's low indicating aggressive short positions built up in the market thus suggesting some weakness may be seen in the market as market seeing selling pressure at the higher levels The nifty futures closed at 11 points discount to spot nifty suggesting liquidation of weak long positions and built up of aggressive short positions. Market if it goes below 4220 levels then we may see further short positions built up in the market and longs liquidating their positions. The FII were sellers' index futures to the tune of 316 crs and buyers in index options to the tune of 399 crs. The PCR has come down from 1.55 to 1.53 indicates some consolidation may be seen in the market.

Among the Big guns, ONGC saw 8.87% rise in OI with prices remaining in a dull range suggesting some consolidation may be seen in the counter before taking any sharp direction on either side. Whereas RELIANCE saw 0.45% loss in OI with prices coming up from lows and closing near day's high indicating shorts covered their positions aggressively as market recovered thus giving further strength to the market.

In the TECH counters, INFOSYSTCH & WIPRO saw gain in OI with prices coming down from high indicating short positions built up in the counter suggesting weakness in the counter. SATYAMCOMP saw drop in OI with prices coming down suggesting liquidation of long positions as market reacted at higher levels thus suggesting caution to be taken while making positions in the counter.

In the BANKING counters, SBIN saw rise in OI with prices coming remaining flat indicating that both bulls and bears were aggressive in the counter thus suggesting some sharp movement may be expected in the counter. ICICIBANK saw drop in OI with fall in prices indicating liquidation of positions and profit booking seen in the counter suggesting one should book profits in the counter. HDFCBANK saw 25.77% rise in OI with prices moving down and closing low indicating fresh short positions built up in the counter suggesting further weakness may be seen in the counter.

In the Metal pack, TATASTEEL saw rise in OI with prices facing resistance at higher levels indicating fresh short positions built up in the counter thus suggesting some weakness may be seen in the counter. SAIL saw rise in OI with prices down indicating short positions built up in the counter suggesting further weakness may be seen in the counter. HINDALCO & STER saw drop in OI with prices coming down indicating liquidation of long positions in these counters. whereas NALCO saw drop in OI with prices flat indicating liquidation of both short and long positions in the counter.

We feel that the volume and built up in OI suggests that market may show some profit booking in the coming few days as settlement is near so one should not take aggressive positions in the market. Market may show further weakness and we may see fresh selling emerging in the market if market sustains below 4220 levels. One should trade with strict stop losses to be adhered too.