Daily Strategist

The NIFTY futures saw a rise of 2.85 % in OI with prices moving up indicating fresh long positions built up in the market thus forcing bears to cover their positions thus indicating further strength in the market .The nifty June series futures discount came up from nil to 6 points indicating some profit booking happening at the end of the day. Market if it sustains above 4210 levels then we may see further short covering their positions and fresh built up of long positions. The FII were buyers in index futures to the tune of 651 crs and buyers in index options to the tune of 355 crs. The PCR has changed from 1.35 to 1.37 levels indicates some buying support may be seen in the market. IV in the market was 23.85 and HV was 23.02.

Among the Big guns, ONGC saw marginal drop in OI with prices coming up indicating shorts covered their positions and some fresh buying emerging in the counter suggesting further strength may be seen in this counter. Whereas RELIANCE saw drop in OI with prices flat indicating some profit booking seen in the counter suggesting one may take long positions in he counter on any dip.

In the TECH counters TCS saw gain in OI with prices moving down indicating short positions built up in these counters and longs liquidating their positions suggesting some weakness may be seen in these counters in coming days. SATYAMCOMP, INFOSYSTCH and WIPRO saw drop in OI with prices remaining in a dull range suggesting that prices facing resistance at current levels indicating some weakness may be seen in these counters in coming days.

In the BANKING counters, SBIN saw rise in OI with prices moving up indicating fresh long positions built up in these counters and shorts covered their positions indicating further strength may be seen in this counters in coming days. HDFCBANK saw drop in OI with prices in a range suggesting liquidation of positions in this counter. ICICIBANK saw gain in OI with prices in a range suggesting that both bulls and bears made aggressive position in the counter indicating uncertainty may prevail in the counter.

In the Metal pack, TATASTEEL & SAIL saw rise in OI with prices facing resistance at current levels suggesting short positions built up at higher levels which may put some pressure on these stocks suggesting some weakness may be seen in these counters. HINDALCO saw drop in OI with prices remaining in a range thus one should have neutral view on the counter. NALCO saw drop in OI with prices coming down indicating liquidation of long positions in the counter. STER saw drop in OI with price crossing the resistance and closing at higher levels indicating further short covering may be seen in this counter suggesting further strength may be seen in this counter.
We feel that the volume and built up in OI suggests that market may show strength if it sustains above 4210 levels where we may see fresh long positions built up in the market thus one should not take aggressive short positions in the market . One should trade with strict stop losses to be adhered too.