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Year 2011 has been witnessing substantial unwinding of positions. Though Nifty futures rollover of
66.71% might be higher than last month, its lower than last year averages. BANKNIFTY (70.85%) has
also seen significant unwinding.
Liquidity was not kind to our markets last month and way the macro concerns are increasing with every
passing week it may not be correct to expect inflows in big way by FIIs. Fag end of series gone by they
started shorting index futures too, apart from cash base selling which was not the case early.
Options data indicates that participants are expecting further downside and hence we are witnessing the
activity in puts have shifted downwards and is more or less equally distributed between 5600 to 5400
put strikes. On the other hand, 5800 call has been attracting significant writing indicates that market
may not see levels meaningfully higher than this strike. Implied volatility continues to remain in a
trading range but we anticipate that range may shift into higher orbit.
Banking and Financials
A blend of long unwinding and fresh shorting
dragged the sector further down. Few large caps
like SBIN (77.34%) and AXISBANK (76.31%) were
showing some strength and have high rollover in
percentage terms, though open interest has
reduced.
HDFCBANK (74.95%) has significant short
positions. Rollover is high both in terms of open
interest and percentage. Immediate support is
standing around 2,000 levels. Avoid shorting till
the levels hold.
Few stocks like CANBANK (80.73%), DENABANK
(88.78%), RELCAPITAL (84.40%) and HDFC
(76.18%) witnessed higher than average rollover
but open interest has decreased significantly.
Metal & Mining
JINDALSTEL (72.31%) witnessed shorting from
higher levels. Stock still has further downside.
TATASTEEL (86.69%) has strong rollover both in
terms of open interest and percentage. The buildup
was mainly due to FPO and contains mixed
positions of short and long.
HINDALCO (70.77%) was moving around its
upper zone of 230-250, rollover is less both the
ways. The stock may underperform the market.
SAIL (83.80%) is trading around its support zone.
Participants who have short positions can cover
their positions.
Oil and Gas
ONGC (77.99%) has shown high rollover with
substantial increase in open interest due to
shorting taking place from1300+ levels. 1070-
1090 is very strong support zone for the counter.
We anticipate short covering and fresh formation
of long positions to take place in Feb series.
Its almost 2 years now that RELIANCE (80.59%)
has been consolidating in the broader range of
900 to 1150. We don’t expect the counter to move
out of this anytime soon. Short positions are rolled
over. 900-920 is strong support. Avoid fresh
positional shorts at CMP.
Some of the oil refineries have witnessed less
rollover of short positions viz. BPCL (47.49%) and
CHENNPETRO (63.52%).
Auto and Auto Ancillary
Ancillary stocks in this space have seen strong
rollovers and mainly short positions. BHARATFORG
(93.26%), APOLLOTYRE (91.36%) and EXIDEIND
(80.83%) fall in above category.
In frontliners M&M (71.90%) was an outperformer
and is very light on open interest front to face any
kind of long unwinding pressure. 720 and 690 are
next support levels for the counter.
ASHOKLEY (77.95%) rolls are less than 3 month
average and significant unwinding has been
observed in the stocks. OI is indicating correction
due to long unwinding.
TCS (68.99%) has given a strong out-performance
throughout the month. Less rollover both in terms
of open interest and percentage is suggesting
some correction in the counter.
WIPRO (75.17%) shed open interest. However,
rollover percentage was higher than average.
Stock has strong support around 400 marks.
IT major INFOSYSTCH (80.74%) has witnessed
shorting at higher levels.
Stocks like PATNI (84.40%) and TECHM (78.13%)
are showing less rollover in open interest as well as
in percentage terms.
Infrastructure
Infra sector was the biggest underperformer in Jan
series and we witness serious shorting across the
board over here. HCC (88.90%), IVRCLINFRA
(86.05%) and PATELENG (79.85%) have added
significant short positions.
RELINFRA (91.58%) too has been a laggard but
didn’t see meaningful shorting. Counter may dip
further but nearing its very strong support zone of
650-680. We suggest to cover shorts in this stock
before it hits that zone.
NAGARCONST (78.56%) has witnessed relatively
less rollover of short positions from Jan to Feb
series. There is no immediate support below 110
for this counter. Keep on that level
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Year 2011 has been witnessing substantial unwinding of positions. Though Nifty futures rollover of
66.71% might be higher than last month, its lower than last year averages. BANKNIFTY (70.85%) has
also seen significant unwinding.
Liquidity was not kind to our markets last month and way the macro concerns are increasing with every
passing week it may not be correct to expect inflows in big way by FIIs. Fag end of series gone by they
started shorting index futures too, apart from cash base selling which was not the case early.
Options data indicates that participants are expecting further downside and hence we are witnessing the
activity in puts have shifted downwards and is more or less equally distributed between 5600 to 5400
put strikes. On the other hand, 5800 call has been attracting significant writing indicates that market
may not see levels meaningfully higher than this strike. Implied volatility continues to remain in a
trading range but we anticipate that range may shift into higher orbit.
Banking and Financials
A blend of long unwinding and fresh shorting
dragged the sector further down. Few large caps
like SBIN (77.34%) and AXISBANK (76.31%) were
showing some strength and have high rollover in
percentage terms, though open interest has
reduced.
HDFCBANK (74.95%) has significant short
positions. Rollover is high both in terms of open
interest and percentage. Immediate support is
standing around 2,000 levels. Avoid shorting till
the levels hold.
Few stocks like CANBANK (80.73%), DENABANK
(88.78%), RELCAPITAL (84.40%) and HDFC
(76.18%) witnessed higher than average rollover
but open interest has decreased significantly.
Metal & Mining
JINDALSTEL (72.31%) witnessed shorting from
higher levels. Stock still has further downside.
TATASTEEL (86.69%) has strong rollover both in
terms of open interest and percentage. The buildup
was mainly due to FPO and contains mixed
positions of short and long.
HINDALCO (70.77%) was moving around its
upper zone of 230-250, rollover is less both the
ways. The stock may underperform the market.
SAIL (83.80%) is trading around its support zone.
Participants who have short positions can cover
their positions.
Oil and Gas
ONGC (77.99%) has shown high rollover with
substantial increase in open interest due to
shorting taking place from1300+ levels. 1070-
1090 is very strong support zone for the counter.
We anticipate short covering and fresh formation
of long positions to take place in Feb series.
Its almost 2 years now that RELIANCE (80.59%)
has been consolidating in the broader range of
900 to 1150. We don’t expect the counter to move
out of this anytime soon. Short positions are rolled
over. 900-920 is strong support. Avoid fresh
positional shorts at CMP.
Some of the oil refineries have witnessed less
rollover of short positions viz. BPCL (47.49%) and
CHENNPETRO (63.52%).
Auto and Auto Ancillary
Ancillary stocks in this space have seen strong
rollovers and mainly short positions. BHARATFORG
(93.26%), APOLLOTYRE (91.36%) and EXIDEIND
(80.83%) fall in above category.
In frontliners M&M (71.90%) was an outperformer
and is very light on open interest front to face any
kind of long unwinding pressure. 720 and 690 are
next support levels for the counter.
ASHOKLEY (77.95%) rolls are less than 3 month
average and significant unwinding has been
observed in the stocks. OI is indicating correction
due to long unwinding.
Information Technology
TCS (68.99%) has given a strong out-performance
throughout the month. Less rollover both in terms
of open interest and percentage is suggesting
some correction in the counter.
WIPRO (75.17%) shed open interest. However,
rollover percentage was higher than average.
Stock has strong support around 400 marks.
IT major INFOSYSTCH (80.74%) has witnessed
shorting at higher levels.
Stocks like PATNI (84.40%) and TECHM (78.13%)
are showing less rollover in open interest as well as
in percentage terms.
Infrastructure
Infra sector was the biggest underperformer in Jan
series and we witness serious shorting across the
board over here. HCC (88.90%), IVRCLINFRA
(86.05%) and PATELENG (79.85%) have added
significant short positions.
RELINFRA (91.58%) too has been a laggard but
didn’t see meaningful shorting. Counter may dip
further but nearing its very strong support zone of
650-680. We suggest to cover shorts in this stock
before it hits that zone.
NAGARCONST (78.56%) has witnessed relatively
less rollover of short positions from Jan to Feb
series. There is no immediate support below 110
for this counter. Keep on that level
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