Firm trend will continue

F&O OUTLOOK

The Nifty futures recovered from the day's low of 6,115 on Friday to close marginally above the immediate resistance level of 6,200, ending the day with a gain of 43 points at 6,203. The average traded price for the day was 6,170 "� a modest nine-point gain from the previous day's close.

Interestingly, the open interest in January futures on Friday declined by 32,379 contracts, indicating short-covering at the lower levels. The recovery, however, lacked depth with the marketwide advance-decline ratio negative at 1:3 against 1:1 for index stocks.

The Nifty PCR declined further with short-covering in put and call options. The short-covering in call options was seen at 6,300 and 6,400 strikes, while call buying was seen at 6,200 strikes.

Short-covering was also seen in the January futures of Reliance Industries, ICICI Bank and Sun Pharmaceuticals.

Fresh long was seen in NTPC, Gail and SBI. The open interest in Reliance futures declined by 3,290 contracts of 75 shares each, while the stock moved up by 3.42 per cent to Rs 3138.65.

ICICI Bank surged 5.90 per cent to Rs 1438.15 with open interest declining by 761 contracts of 175 shares each. NTPC firmed up by 2.83 per cent to Rs 274.55, Gail was up 3.42 per cent to Rs 508.50 and State Bank of India was up 1.79 per cent to 2454.40.

The short-covering and the long build-up indicate a firm opening for these stocks when the market opens for trading on Monday.