Anand Rathi - Daily Strategist

The NIFTY futures saw a fall in OI 6.28% with prices closing at 3655.65 indicating that lot of short covering took place as market opened with gap as foreign markets recovered which forced bears to cover their positions and weak longs liquidating their positions as market recovered .we feel that till the market doesn't sustains above 3750 levels we may not see aggressive short covering and fresh money coming in the market .The nifty futures discount narrowed again indicating aggressive short covering .The FIIs were buyers in nifty futures to the tune of 1337 crs .The PCR has come up from 0.93 to 0.96 levels indicating some support in the market .The volatility has come down from 34.95 to 30.80 levels indicating some buying support in the market.

Among the Big guns, ONGC saw fall of OI to the tune of 2.93% with prices coming down 0.54% indicating long positions are liquidated in the counter as the counter moved up not showing much of strength whereas RELIANCE saw fall of OI to the tune of 4.37 % with prices coming up 3.05 % indicating that the counter saw lot of short covering performing in line with the market.

On the TECH front, TCS, INFOSYSTCH, , WIPRO saw fall of OI with sharp rise in prices indicating lot of short covering g seen in these counters performing in line with market whereas SATYAMCOMP saw rise in OI with rise in price indicating lot of lot positions built up in this counter indicating strength in this counter.

The BANKING counter SBIN saw flat OI with prices going up by 2.64 indicating that shorts covered their positions and fresh long positions built up in the counter which may give some support to the counter whereas ICICIBANK saw fall in OI with prices 3.20% up indicating heavy short covering in the counter performing in line with the market & HDFCBANK saw OI coming up with prices coming down indicating that both bulls and bears were aggressive in this counter.

In the METALS TATASTEEL, SAIL saw fall in OI with prices almost flat indicating liquidation by both bulls and bears in these counters .JSWTEEL saw rise in OI with price rise indicating that their was buying support in the counter indicating strength in this counter . HINDALCO saw fresh short positions building in indicating further weakness in this counter whereas NALCO saw fall in OI with price rise indicating short covering in this counter and fresh buying happening h in this counter indicating strength.

Considering the overall scenario and the markets recovery the market may move up today and we would see bears running for cover if the market sustains above the critical level .Traders are advised not to go short on the market and any position taken today should be with strict stop losses to be adhered too.

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Thanks Yash