Weekly Strategist

Weekly Market Wrap-up:

In the last week, the Nifty Futures open interest (OI) increased by 6.99 percent (from 648780 contracts to 694114 contracts) with an decrease in price of 2.03 percent (from 3799.85 to 3722.55). The Nifty Call OI increased by 41.48 percent from 199528 contracts to To 282298 contracts and the Nifty Put OI increased by 34.35 percent from 182382
contracts to 245022 contracts. The Total open interest of Nifty was up by 18.51 percent from 1030690 contracts to 1221434 contracts. The net OI of Nifty (Future + Call - Put) was up by 9.83 percent i.e. from 665926 contracts to 731390 contracts. The Nifty PCR (OI) has shown a significant change from 0.91 to 0.82. The Nifty basis over the week
changed from (22) to (30) points. In the Current week, we maintain a sideways movement view on the market.

Nifty Perspective
Nifty futures on weekly basis decreased by 2.03 percent to close around 3722.50. Open interests in Nifty future has increased from 648780 contracts to 694114 with index closing lower, week on week basis around 3752. The rise in OI with fall in price indicates that lot of short positions being built up in the market as market saw a resistance around 3800 levels where bears made short positions forcing bulls to liquidate their positions aggressively .Market may show strength only if it sustains above 3800 levels where we may see fresh buying happening in the market.. FII's figures were negative in the market during the last day to the tune of 497 crs . The other indicators in derivatives market i.e. PCR_OI indicating continuous weakness as coming down from 0.91 to 0.86. The implied volatility is around 25 to 30 levels which is again on higher side indicating volatile trading sessions ahead whereas HV is in a range of 38 to 41 indicating sharp movement may come in the market. One should hedge their positions till the trend doesn't become clear and should trade with strict stop
losses.



RELIANCE
RELIANCE gained OI to the tune of 6.93% with a fall in price of 0.83% indicating both
bulls and bears are aggressive in this counter indicating sharp movement may be
expected in this counter as lot of positions are pending in this counter .. If the counter breaches 1350 levels we may see fresh selling in the counter and longs liquidating their positions aggressively. The counter may show real strength once it crosses 1380 levels where we may see further built up of long positions and fresh money coming in the counter. Meanwhile the counter has support around 1350 and resistance around 1380.

TATASTEEL
Open interest in TATASTEEL has gone down by 18.13% with 3.52% rise in price. The
fall in OI indicates that short covered their positions as market recovered. On the last day of the week OI lost with prices rising indicating short covering seen in the counter which shows strength in the counter. The counter may come under bear grip if it goes below 425 levels where we may see fresh short built up and heavy liquidation of long positions. The counter has crossed 460 levels so we expect some fresh money may come in the counter and it may show further strength. Meanwhile the counter has
support around 430 and resistance around 490 levels.


SATYAMCOMP
SATYAMCOMP gained OI to the tune of 19.85% with a fall in price of 3.15% indicating
shorts positions being built up in the counter indicating weakness in the counter. If the counter breaches 440 levels we may see fresh selling in the counter and longs
liquidating their positions aggressively. The counter may show real strength once it
crosses 465 levels where we may see further built up of long positions and fresh money coming in the counter. Meanwhile the counter has support around 440 and resistance around 465.

HINDLEVER
HINDLEVER gained OI to the tune of 16.43% with a fall in price of 2.53% indicating
shorts positions being built up in the counter indicating weakness in the counter. If the counter breaches 195 levels we may see fresh selling in the counter and longs
liquidating their positions aggressively. The counter may show real strength once it
crosses 207 levels where we may see further built up of long positions and fresh money coming in the counter. Meanwhile the counter has support around 193 and resistance around 207.


TATAMOTORS
TATAMOTORS gained OI to the tune of 14.50% with a fall in price of 5.78% indicating
shorts positions being built up in the counter indicating weakness in the counter. If the counter breaches 670 levels we may see fresh selling in the counter and longs
liquidating their positions aggressively. The counter may show real strength once it
crosses 710 levels where we may see further built up of long positions and fresh money coming in the counter. Meanwhile the counter has support around 670 and resistance around 700.