Anand Rathi - Daily Strategist

The NIFTY futures saw a gain of 7.42 % in OI with prices coming up and closing dear day's high indicating long positions built up in the market thus suggesting some strength may be seen in the market in the new settlement month as market crossed the resistance of 4280 levels thus may force bears to cover their positions .The nifty June series futures closed at 17 points discount to spot nifty suggesting lack of confidence among players resulting in liquidation of positions by weak hands. Market if it sustains above 4240 levels then we may see further long positions built up in the market and shorts covering their positions. The FII were buyers of index futures to the tune of 392 crs and buyers in index options to the tune of 311 crs. The PCR has come down from 1.53 to 1.54 indicates some consolidation may be seen in the market.

IV in the market was 28.55 and HV was 23.79.

Among the Big guns, ONGC saw drop in OI with rise in prices indicating shorts covering up their positions in the counter suggesting some strength may be seen in the counter. Whereas RELIANCE saw drop in OI with prices remaining in a range suggesting some consolidation may be seen in the counter before taking any harp direction on either side.

In the TECH counters, INFOSYSTCH & WIPRO saw drop in OI with prices up indicating shorts covered their positions indicating buying support emerging at lower levels suggesting some strength may be seen in these counters. SATYAMCOMP saw drop in OI with prices coming up suggesting buying emerging at lower levels in the counter thus forcing bears to cover their positions .TCS saw rise in OI with prices coming down indicating short positions built up in the counter suggesting some weakness may be seen in the counter.

In the BANKING counters, SBIN saw rise in OI with prices up indicating fresh money coming in the counter with buying spree suggesting further strength in the counter.ICICIBANK saw rise in OI with prices remaining in a range suggesting some profit booking may be seen in the counter. HDFCBANK saw drop in OI with prices moving up and closing high indicating shorts covering their positions aggressively in the counter suggesting further strength may be seen in the counter.

In the Metal pack, TATASTEEL & SAIL 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 .HINDALCO saw gain in OI with prices in a range suggesting some consolidation may be seen in the counter .NALCO saw gain in OI with prices closing near day's low indicating short positions in the counter suggesting weakness in the counter .STER saw marginal drop in OI with rise in prices indicating fresh long positions built up in the counter suggesting strength 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 lot of positions are outstanding in the market 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.