Nifty consolidated in the range of 5050-5150 for the entire week and finally
closed around 5100 levels. This expected consolidation is accompanied
by stock specific activity with focus in the cash segment.
n Market wide open interest is seen at Rs. 1,11,787 cr. Marginal shed in
seen in Nifty futures open interest with futures trading at a discount.
n Front line IT stocks are expected to witness action led by Infosys Tech and
TCS. Mid-cap IT space also trade with a positive bias. Profit booking is expected
in capital goods majors at higher levels; higher levels should be
used to initiated short positions in the same.
n We remain positive on the Pharma and Oil and Gas space from the medium
term. We advice accumulating Biocon at lower levels. GAIL remains
positive above 380 for 450 on the higher side.
n Nifty options OI concentration is seen at 5200 call and 5000 put options.
Call writing is seen at 5150-5200 levels while put writing is seen at 4900-
4950 levels. PCROI is seen at 1.36 with over all open interest in the options
segment at recent highs.
OUTLOOK
n Nifty Dec turnaround is seen at 5070 above which it remains in positive
territory. We advice holding long positions above the same. Long aggression
should be avoided below the same. In the near term consolidation is
expected in the range of 5050-5200.
n We remain positive in the IT space for the near term. Infosys is expected
to test 2500-2550 in the near term. Significant action is expected in the
mid-cap IT space. We remain positive on the pharma space for the medium
term and advice accumulating Biocon for higher levels.
