Lacklustre trend ahead

F&O OUTLOOK

If the S&P Nifty is unable to sustain above 3,750 levels, the market will see a trend reversal below 3700 levels. Nifty March futures closed at 3722.55 before hitting an intra-day high of 3758 on Thursday. This is a clear indication that Nifty futures are unable to sustain above 3,750 levels.

Interestingly, the open interest in Nifty put options increased by 32.37 lakh shares, of which nearly 89 per cent OI was built up at Put 3,500 and Put 3,600 levels. It indicates that market support is likely to be at around these levels.

Bulls extended their recent winning streak to third trading session, led by gains in index heavyweights such as Tata Steel, ICICI Bank and HLL. With the results season kicking off from next week and the undertone still weak, investors should be careful.

The trend is likely to remain lacklustre ahead of the Infosys results on April 13. Software firms are likely to be impacted by the rupee's surge against the dollar. The market may remain rangebound and choppy depending on the global cues. Also, global factors such as the health of the US economy, the Chinese government's efforts to engineer a smooth landing and yen carry trades will continue to play a role in our markets. 

F&O SNAPSHOT
	Turnover (Rs crore)*
Open int ('000)**
Mar 30,07	Apr 05,07	Mar 30,06	Apr 05,07
Nifty	80603.81	56748.98	52608	62366
BANKNIFTY	663.39	273.97	107	115
CNXIT	29.59	14.31	5	6
Stock	71924.33	42219.47	861447	980161
NSE total	153221.10	99256.73	914166	1042648
*Monthly aggregates notional Value, **In shares

Volumes continues to be lower. The main indices closed well off their highs as they found resistance at the 12835/3750 levels.

The 13-day short term moving averages also acted as a resistance to the main indices and these are now the immediate resistance levels to be overcome for the upmove to continue.