Research Reports

Markets could open higher

Markets witnessed a spectacular rally on Wednesday, on hopes of rate cut by the RBI. There was marginal unwinding of longs as Nifty Fut OI declined by 362 contracts and the discount on Nifty June Fut expanded to 18.5pts. FIIs were building shorts as they were net sellers to the tune of 40crs. in the index fut segment and their OI rose.

Nifty OI PCR climbed to 1.6, indicating a build up of puts. In the index option segment, maximum OI was seen outstanding in the 5000-5200 calls and 4800 puts, indicating this is the expected trading range.

In the stock fut segment, there was a build up of longs in GMR Infra, Pantaloon Retail, India Info and Essar Oil. Shorts were built in Balrampur Chini, Colpal, HPCL and IOC. Technically, with the Nifty rallying further, traders will need to see if the Nifty can now take out its previous highs of 5020 for further upsides. Weakness could emerge if the immediate supports of 4940 are broken.