Anand Rathi - Daily Strategist

Nifty futures gained OI to the tune of 1.81% with prices coming down indicating short positions building in the market at higher levels with nifty futures not ready to move above 4180 levels. If nifty sustains below 4140 levels we may see fresh short positions being formed in nifty futures .The nifty may show real strength once it crosses 4180 marks as lot of short covering may be seen in nifty futures around those levels and fresh buying may come around those levels. The FIIs sold nifty futures to the tune 474 crs with buying in index options of 261 crs indicating hedged positions by major Market participants. The PCR has come down from 1.37 to 1.33 levels which indicates weakness in the market.

Among the Big guns ONGC saw significant built up in OI to the tune of 6.70 %with prices coming down around 3.32% indicating that bears were having upper hand in the counter and lot of aggressive short positions are formed in the counter indicating weakness n the counter .RELIANCE saw heavy built up in OI to the tune of 9.14 % with prices flat to negative indicating that both bulls and bears got aggressive in the counter as the e counter crossed its crucial level of 1400 but as market reacted from high their was selling pressure in the counter .If market sustains at higher levels we may see heavy short covering and fresh buying in the counter as there are lot of positions outstanding in the counter.

On the TECH front, INFOSYSTCH ,TCS, WIPRO saw built up in OI with prices coming down indicating short positions are formed in the IT pack .SATYAMCOMP saw OI coming down with prices coming down indicating longs liquidating their positions as market could not support the buying spree.

On the Metal front, we saw marginal shed in OI with prices almost flat in both TATASTEEL & HINDALCO indicating that no major activities are their in these counters. SAIL saw built up in OI with prices coming down indicating short positions are formed in these counter.

In the BANKING arena SBIN significant built up in OI with prices coming down sharply indicating short positions are formed in the counter indicating further weakness whereas ICICIBANK saw liquidation of long positions.

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Thanks Yash