F&O Watch: Glaxo, Hero Honda may move up

The Nifty April futures was traded at premium of over 10 points on heavy short covering, and closed at 3529 when compared with the spot close of 3518.10.

The cost of carry (CoC) of Nifty April futures was positive 15.24% as against negative 1.48% yesterday.

The Nifty put-call ratio (PCR) moved up to 1.49 from 1.21 as call options shed nearly 5.6 lakh shares and put options added 14.5 lakh shares. 
 

OPEN INTEREST                                                         (In million)
Underlying	18-Apr	17-Apr	13-Apr	12-Apr	10-Apr	7-Apr
Nifty	47.80	47.13	46.89	47.81	46.38	45.19
RIL	22.23	22.95	22.64	23.72	20.90	19.17
Satyam Computer	13.01	13.56	15.27	14.38	11.78	9.76
Infosys	3.24	3.82	4.54	3.96	3.52	3.39
SBI	12.83	12.50	12.72	12.44	11.97	10.40
Cipla	10.98	10.62	10.72	11.18	9.19	8.35
Tata Steel	18.05	16.98	16.75	17.14	17.40	16.41
Total	1210.09	1192.38	1193.32	1221.13	1173.01	1132.47

The good news - FIIs are cutting their short positions, which augurs well for the market.

Profit booking was seen in CNXIT (-6100 shares) and in IT stocks like Infosys (-27%), Patni (-17%) and TCS (-12%). ONGC (-8.06%), UTI Bank (-18.96%), Mahindra (-5.25%), NTPC and Gujarat Ambuja (-4%), too, witnessed profit booking.

Long OI was built up in Alok Textiles (27%), i-Flex (18%), MTNL (20%), Chambal Fertilisers (14%), Glaxo (11%), Hero Honda (11%) and Titan (10%).  We may see upside moves in these stocks.

The big trigger for the market tomorrow would be the provisional figures for FIIs' trading on April 18. Data available from the BSE website shows that FIIs were net sellers in the cash market for Rs 441crore (gross buying of Rs 2,065 crore and gross sales of Rs 2,506 crore).