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Last we saw market closing below yesterday’s closing of 4839.60 was on 11-Feb-2010. August series has
clearly witnessed significant shorting pressure which is reflected in rollovers in index futures. NIFTY (70.88%)
has seen rollover which is inline with last months in percentage but unlike then this time it has added
substantial open interest indicates short rollovers have taken place. BANKNIFTY (63.92%) despite lower
rollover in percentage have added huge open interest thus clearly depicting rolling over of significant short
positions.
On options front, 4800 put has highest OI in puts but high IV of 26.36% suggests that not all of the built-up
is writing and hence this level which did act as strong support in August series may be continuously
challenged and probably breached for time being in September series.
FIIs continue to sell in cash markets along with shorting in index futures. Quantum of short positions in
system are more due to these strong hands formed shorts from higher levels so don’t expect massive short
covering but we believe in this series markets may not fall substantially
Banking and Financials
Unlike last month AXISBANK (82.36%) has seen
high rollovers and significant addition of short
positions. Counter if corrects to its strong support
zone of 900-920 then its must buy for investors.
IDFC (81.99%) too has witnessed high rolls and
pilling up of short positions. After filling gap
between 99-104 levels there can be a short
covering bounce in the counter.
Most of the mid-cap banks have reduced
substantial open interest in last series viz. IOB
(74.43%), DENABANK (84.92%), VIJAYABANK
(81.30%), ANDHRABANK (73.89%), CENTRALBK
(83.49%).
Metal & Mining
JSWSTEEL (95.27%) has seen highest rollover in
this sector with significant addition of short
positions as it corrected around 21% in last series.
We don’t expect much of short covering here;
avoid positional long positions in it.
TATASTEEL (80.75%) to our disbelief has also
corrected with addition of short positions. Support
zone of 395-410 is where we may see some of
these shorts getting covered.
Unlike last month SAIL (79.89%) and
NATIONALUM (70.22%) have witnessed low
rollover with significant decline in OI. SAIL
appears to be decent buy around 95 odd levels.
Oil and Gas
CAIRN (92.06%) has considerable short positions
and rollover is also high. Stock is trading around
its support. Thus, it is advisable to be cautious
while trading in the stock.
RELIANCE (85.53%) is still not showing any kind of
strength till now. Avoid forming long for the time
being.
ONGC (83.20%) outperformed the market and it
can reach around 290 levels. The level can be
used to book profit in it.
After less rollover last month GAIL (75.82%)
added considerable short positions during the
month. It may give further correction.
Information Technology
Among heavy weights HCLTECH (74.71%) added
lot of short positions and underperformed while
INFY (79.41%) had flat OI and TCS (82.61%)
corrected due to long unwinding. We don’t expect
any major short covering activity in them.
ROLTA (68.31%) has seen significant decline in
open interest and rollover is also less. Short
positions have not been rolled over. Keep eye on
it.
Least affected counter in this space was
FINANTECH (90.32%) and it did see highest
rollover too. 680-820 is a broad range for it.
Trade accordingly with positive bias.
Auto and Auto Ancillary
One of the out performers in the sector and even
in the market BAJAJ-AUTO (82.94%) witnessed
around average rollover and stock is still showing
strength. We may see a positive move up to 1575
levels.
TATAMOTORS (89.76%) and TATAMTRDVR
(89.38%) are the biggest underperformer of the
sector. TATAMOTORS still has considerable short
positions and rollover is also higher then average.
Small bounce due to short covering can be
expected.
Consumer Goods and FMCG
Few stocks where rollover is high in terms of open
interest are APOLLOTYRE (89.19%),
ASHOKLEYLAND (82.98%) and M&M (79.19%).
In the past few trading sessions, ITC (78.72%) and
HINDUNILVR (81.89%) witnessed some long
formation. We believe in such a volatile market
these defensives may again reach around 210
and 335 levels respectively.
Long positions are still standing in TITAN (82.32%)
though the stock witnessed considerable
unwinding during the month. I don’t expect major
correction till the stock is holding 193 levels.
Stocks where rollover is high are RUCHISOYA
(97.96%), PANTALOONR (95.06%) and KSOILS
(81.62%).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Last we saw market closing below yesterday’s closing of 4839.60 was on 11-Feb-2010. August series has
clearly witnessed significant shorting pressure which is reflected in rollovers in index futures. NIFTY (70.88%)
has seen rollover which is inline with last months in percentage but unlike then this time it has added
substantial open interest indicates short rollovers have taken place. BANKNIFTY (63.92%) despite lower
rollover in percentage have added huge open interest thus clearly depicting rolling over of significant short
positions.
On options front, 4800 put has highest OI in puts but high IV of 26.36% suggests that not all of the built-up
is writing and hence this level which did act as strong support in August series may be continuously
challenged and probably breached for time being in September series.
FIIs continue to sell in cash markets along with shorting in index futures. Quantum of short positions in
system are more due to these strong hands formed shorts from higher levels so don’t expect massive short
covering but we believe in this series markets may not fall substantially
Banking and Financials
Unlike last month AXISBANK (82.36%) has seen
high rollovers and significant addition of short
positions. Counter if corrects to its strong support
zone of 900-920 then its must buy for investors.
IDFC (81.99%) too has witnessed high rolls and
pilling up of short positions. After filling gap
between 99-104 levels there can be a short
covering bounce in the counter.
Most of the mid-cap banks have reduced
substantial open interest in last series viz. IOB
(74.43%), DENABANK (84.92%), VIJAYABANK
(81.30%), ANDHRABANK (73.89%), CENTRALBK
(83.49%).
Metal & Mining
JSWSTEEL (95.27%) has seen highest rollover in
this sector with significant addition of short
positions as it corrected around 21% in last series.
We don’t expect much of short covering here;
avoid positional long positions in it.
TATASTEEL (80.75%) to our disbelief has also
corrected with addition of short positions. Support
zone of 395-410 is where we may see some of
these shorts getting covered.
Unlike last month SAIL (79.89%) and
NATIONALUM (70.22%) have witnessed low
rollover with significant decline in OI. SAIL
appears to be decent buy around 95 odd levels.
Oil and Gas
CAIRN (92.06%) has considerable short positions
and rollover is also high. Stock is trading around
its support. Thus, it is advisable to be cautious
while trading in the stock.
RELIANCE (85.53%) is still not showing any kind of
strength till now. Avoid forming long for the time
being.
ONGC (83.20%) outperformed the market and it
can reach around 290 levels. The level can be
used to book profit in it.
After less rollover last month GAIL (75.82%)
added considerable short positions during the
month. It may give further correction.
Information Technology
Among heavy weights HCLTECH (74.71%) added
lot of short positions and underperformed while
INFY (79.41%) had flat OI and TCS (82.61%)
corrected due to long unwinding. We don’t expect
any major short covering activity in them.
ROLTA (68.31%) has seen significant decline in
open interest and rollover is also less. Short
positions have not been rolled over. Keep eye on
it.
Least affected counter in this space was
FINANTECH (90.32%) and it did see highest
rollover too. 680-820 is a broad range for it.
Trade accordingly with positive bias.
Auto and Auto Ancillary
One of the out performers in the sector and even
in the market BAJAJ-AUTO (82.94%) witnessed
around average rollover and stock is still showing
strength. We may see a positive move up to 1575
levels.
TATAMOTORS (89.76%) and TATAMTRDVR
(89.38%) are the biggest underperformer of the
sector. TATAMOTORS still has considerable short
positions and rollover is also higher then average.
Small bounce due to short covering can be
expected.
Consumer Goods and FMCG
Few stocks where rollover is high in terms of open
interest are APOLLOTYRE (89.19%),
ASHOKLEYLAND (82.98%) and M&M (79.19%).
In the past few trading sessions, ITC (78.72%) and
HINDUNILVR (81.89%) witnessed some long
formation. We believe in such a volatile market
these defensives may again reach around 210
and 335 levels respectively.
Long positions are still standing in TITAN (82.32%)
though the stock witnessed considerable
unwinding during the month. I don’t expect major
correction till the stock is holding 193 levels.
Stocks where rollover is high are RUCHISOYA
(97.96%), PANTALOONR (95.06%) and KSOILS
(81.62%).
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